Karlovac Leather Garments is a retail garments store. The following information relates to them:

• Sales budget for the following month:
• Collections expected for sales
• Gross margin budgeted at 30 per cent of the sale.
• Merchandise purchased on credit and is payable next month.
• 80% of merchandise purchased in the month prior to sale and 20 per cent in the same month in which the sale is made.
• Depreciation is calculated based on the straight-line depreciation method and is estimated to be $1800 per month.
• Budgeted monthly expenses: $2260.
• January: $27,000
• February: $20,000
• 70% in the month of sale
• 30% in the month following the sale

Balance sheet for the month ending 31 December 2017:

Assets:	$
Cash	280
Accounts receivable	7,600
Inventory	15,120
Fixtures and fittings*	87,000
Total assets	110,000
Liabilities and owners' equity:
Accounts payable	10,000
Owners' equity	100,000
Total liabilities and owners' equity	110,000

As per the organisational procedures, the organisation prepares monthly budgets.

Required:

In this part of assessment task, you are required to estimate the following:

1. Budgeted cash receipts for January
2. Budgeted profit for January
3. Budgeted account payable on 31 January.
4. Budgeted inventory at 31 January.

need answer below:

Template 1:
Budgeted cash receipts for January:
	Calculations	$
From January
From December (A/R)
Total cash receipts

Template 2:
Budgeted cash receipts for January:
	Calculations	$
Sales
Cost of goods sold*
Gross margin
Depreciation
Other expenses
Net profit

Template 3:
Budgeted accounts payable at 31 January
	Calculations	$
Opening balance
Purchases on credit:
Payments (from Accounts payable 31 October)
Closing balance

Template 4:
Budgeted inventory at 31 January
	Calculations	$
Opening inventory (31 December)
Plus, Purchases
Cost of goods available for sale
Less Cost of goods sold
Closing inventory (31 January)

Answer rating: 100% (QA)

Answer Template 1 Budgeted cash receipts for January Calculations From January sal... View the full answer