The following data apply to the HASF Hardware Store and its 2011 budget Forecast Sales Jan $200,000
Question:
The following data apply to the HASF Hardware Store and its 2011 budget
Forecast Sales
Jan
$200,000
Feb
$160,000
Mar
$180,000
Apr
$45,000
Balance Sheet Data
December 31,2010
Cash
$80,000
Account receivable:
November sales
45000
December sales
50000
Inventory
54000
Account payable(merchandise)
27000
Other data are as follows:
Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale
Cost of goods sold is 50% of sales
Other variables costs are 30% of sales paid in the month incurred
Inventories are to be 80% of next month’s budgeted sales requirements
Fixed expenses are $15000 per month; all require cash
Credit time period for purchases are 30 days
On basis of above information answer following questions
What will be the purchase in the month of March 2011?
What will be the purchase in the month of January 2011?
What will be the purchase in the month of February 2011?
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson