a)
Schedule of Cash Payments for Inventory Purchases:
April | May | June | |
---|---|---|---|
Payment for current accounts payable | $96,300 | ($127,000 * 90% = $114,300 | ($139,000 * 90%) = $125,100) |
Payment for previous accounts payable | 10,000 | ($107,000 * 10% = $10,700) | $127,000 * 10% = $12,700) |
Total budgeted payments for inventory | $106,300 | ($114,300 + $10,700 = $125,000) | ($125,100 + $12,700) = $137,800) |
b)
Accounts payable the company will report on its pro forma balance sheet at the end of the second quarter will be the June purchases ($139,000) * 10% = $13,900.
Exercise 14-8 Preparing a schedule of cash payments for inventory purchases LO 14-3 (on $107,000 $127,000...
Exercise 14-8 Preparing a schedule of cash payments for inventory purchases LO 14-3 Rooney Books buys books and magazines directly from publishers and distributes them to grocery stores. The wholesaler expects to purchase the following inventory: April $ 108,000 May $128,000 June $140,000 Required purchases (on account) Rooney Books's accountant prepared the following schedule of cash payments for inventory purchases. Rooney Books's suppliers require that 85 percent of purchases on account be paid in the month of purchase, the remaining...
Problem 14-18 Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Humboldt, 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 $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...
Saved Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4 The budget director for Solomon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month...
Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4 The budget director for Benson Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of...
Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4 The budget director for Finch Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of...
Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14-4 The budget director for Solomon Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of...
Exercise 14-11 Preparing a schedule of cash payments for selling and administrative expenses LO 14.4 The budget director for Fanning Cleaning Services prepared the following list of expected selling and administrative expenses. All expenses requiring cash payments are paid for in the month incurred except salary expense and insurance. Salary is paid in the month following the month in which it is incurred. The insurance premium for six months is paid on October 1. October is the first month of...
Preparing a schedule of cash payments for inventory purchases Glendo Grocery buys and sells groceries in a community far from any major city. Travis Glendo, the owner, budgeted the store's purchases as follows: October November December Required purchases (on account) $30,000 $22.500 $40,000 Glendo's suppliers require that 70 percent of accounts payable be paid in the month of purchase. The remaining 30 percent is paid in the month following the month of purchase. Schedule of Cash Payments for Inventory Purchases...
2 parts Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter...
Exercise 14-7 Preparing an inventory purchases budget LO 14-3 Finch Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Finch’s policy is to maintain an ending inventory balance equal to 10 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $80,000. Required Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report...