a. Budgeted purchase = Cost of goods sold + Ending inventory - beginning inventory
= 380000*1.05 + 33000 - 32000
= $400,000
b. Cash payment = 400000*70% = $280,000
3 Munoz Company, which sells electric razors, had $380,000 of cost of goods sold during the...
Adams Company, which sells electric razors, had $330,000 of cost of goods sold during the month of June. The company projects a 9 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $31,000, and the desired ending Inventory balance for July is $32,000. Adams pays cash to settle 75 percent of its purchases on account during the month of purchase and pays the remaining 25 percent in the month following the purchase....
Widden Company, which sells electric razors, had $360,000 of cost of goods sold during the month of June. The company projects a 10 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $32,000, and the desired ending inventory balance for July is $33,000. Widden pays cash to settle 80 percent of its purchases on account during the month of purchase and pays the remaining 20 percent in the month following the purchase....
Widden Company, which sells
electric razors, had $360,000 of cost of goods sold during the
month of June. The company projects a 7 percent increase in cost of
goods sold during July. The inventory balance as of June 30 is
$23,000, and the desired ending inventory balance for July is
$24,000. Widden pays cash to settle 75 percent of its purchases on
account during the month of purchase and pays the remaining 25
percent in the month following the purchase....
Zachary Company, which sells electric razors, had $310,000 of cost of goods sold during the month of June. The company projects a 6 percent increase In cost of goods sold during July. The Inventory balance as of June 30 Is $36,000, and the desired ending inventory balance for July Is $37000. Zachary pays cash to settle 75 percent of its purchases on account durtng the month of purchase and pays the remaining 25 percent in the month following the purchase....
Stuart Company, which sells electric razors, had $300,000 of cost of goods sold during the month of June. The company projects a 9 percent increase in cost of goods sold during July. The inventory balance as of June 30 is $35.000, and the desired ending inventory balance for July is $36,000. Stuart pays cash to settle 80 percent of its purchases on account during the month of purchase and pays the remaining 20 percent in the month following the purchase....
Munoz, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. April May June July Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000 Munoz had a beginning inventory balance of $4,400 on April 1 and a beginning balance in accounts payable of $14,900. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Munoz makes all purchases...
On May 1, 2018, Love Corporation declared a $68,900 cash dividend to be paid on May 31 to shareholders of record on May 15. Required: Record the events occurring on May 1 and May 31 in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), Investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account balances...
Peabody, Inc., sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July. April Budgeted cost of goods $70.000 sold May $80,000 June $90,000 July $96,000 Peabody had a beginning inventory balance of $2,600 on April 1 and a beginning balance in accounts payable of $15,200. The company desires to maintain an ending inventory balance equal to 20 percent of the next period's cost of goods sold. Peabody makes all purchases...
A. On May 1, 2018, Love Corporation declared a $58,600 cash dividend to be paid on May 31 to shareholders of record on May 15. Required: Record the events occurring on May 1 and May 31 in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. (Enter any decreases to account...
April May June July $37,500 $34,000 $30,000 $45,000 Budgeted cost of goods sold Humboldt had a beginning inventory balance of $1,800 on April 1 and a beginning balance in accounts payable of $7,400. The company desires to maintain an ending inventory balance equal to 10 percent of the next period's cost of goods sold. Humboldt makes all purchases on account. The company pays 60 percent of accounts payable in the month of purchase and the remaining 40 percent in the...