Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $876,000, inventories of $128,520, and accounts payable of $36,202. The budget is to be based on the following assumptions.
Purchase data are as follows.
Dollars | Units | ||
March | $ | 165,200 | 11,800 |
April | 183,400 | 13,100 | |
May | 166,600 | 11,900 | |
June | 159,600 | 11,400 | |
July | 168,000 | 12,000 | |
August | 14,800 | 12,200 | |
Required:
a. Compute the budgeted purchases in dollars
for May.
b. Compute the budgeted purchases in dollars for
June.
c. Compute the budgeted cash collections during
May. (Do not round intermediate calculations. Round your
final answer to nearest whole dollar.)
d. Compute the budgeted cash disbursements during
June. (Do not round intermediate calculations.
Round your final answer to nearest whole
dollar.)
e. Compute the budgeted number of units of
inventory to be purchased during July.
Above question is about to find out budgeted purchases in dollars for the months of may ,June and cash collections during may and cash disbursement during June and budgeted number of units purchased during July. Refer below images for more detailed solution.
Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and...
Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $876,000, inventories of $106,920, and accounts payable of $30,536. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month. Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are...
Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $855,000, inventories of $122,625, and accounts payable of $29,134. The budget is to be based on the following assumptions. • Each month's sales are billed on the last day of the month. • Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date....
Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $11,000, accounts receivable of $874,000, inventories of S618,800, and accounts payable of $266,110. The budget is to be based on the following assumptions .Each month's sales are billed on the last day of the month. .Customers are allowed a 2 percent discount if payment is made wihin 10 days after the billing date. Recelvables are...
D. Tomlinson Retail seeks your assistance in developing cash and other budget information for May, June, and July. The store expects to have the following balances at the end of April: Cash Accounts receivable Inventories Accounts payable $ 5,400 489,000 281,400 150, 190 The firm follows these guidelines in preparing its budgets: • Sales. All sales are on credit with terms of 3/10, n/30. Tomlinson bills customers on the last day of each month. The firm books receivables at gross...
Item1 11.11points eBook Print References Check my workCheck My Work button is now enabled Item 1 Item 1 11.11 points Mast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $10,000, accounts receivable of $874,000, inventories of $143,880, and accounts payable of $35,975. The budget is to be based on the following assumptions. Each month’s sales are billed on the last day of the month....
You have been asked to prepare the monthly cash budget for June and July for the Merchandise and Mercantile Company. The company sells a unique product that is specially made for it by a major product manufacturer. The selling price is $18.00 per unit. All sales are on account. Merchandise purchases are also on account. The policy of the company is to purchase sufficient quantity of product to ensure that each month’s ending inventory is 50% of the following month’s...
You have been asked to prepare the monthly cash budget for June and July for the Merchandise and Mercantile Company. The company sells a unique product that is specially made for it by a major product manufacturer. The selling price is $18.00 per unit. All sales are on account. Merchandise purchases are also on account. The policy of the company is to purchase sufficient quantity of product to ensure that each month’s ending inventory is 50% of the following month’s...
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Show transcribed image text Problem 22-7AA Merchandising: Preparation and analysis of cash budgets with supporting inventory and purchases budgets LO P4 Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 4,000 1,800 5,500 4,500 4,100 Dollars $ 640,000 288,000 880,000 879,000 656,000 All sales are on credit. Recent experience shows that 26% of credit sales is collected in the month of the sale,...