Applies to Acapulco Store an export / import business. Sales are 4 0 % cash
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Question:
Applies to Acapulco Store an exportimport business.
Sales are cash and credit.
Of the credit sales, are collected in the first month following the sales and in the second month following the sale.
The gross profit margin on sales averages
All inventory purchases are paid during the month in which they are made.
A basic inventory of P is constantly maintained, and the store follows the policy of purchasing enough additional inventory to cover the following months sales.
The store maintains a minimum cash balance of P
Accrued wages remain unchanged.
Balance Sheet, September
Cash
P
Accrued Wages & Sal.
P
Accounts Receivable
Other Liabilities
Inventory
Capital
Furniture and Fixture
Accumulated Depn
Total Assets
P
Total Liabilities& Equity
P
Past Sales: August P; September P
Sales Budget
October
P
November
December
Monthly Expenses
Wages and Salaries
October
P
November
Rent: Pmonth
Depreciation: Pmonth for old furniture and fixtures
Other Expenses: of sales
Required:
Project the balance sheet and income statement for October and November. Present all pertinent solutions. Find the current ratio, acid test ratio, and debtequity ratio.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date: