Bill Bob, plans to sell toy cars over the internet and by mail order. Billy Bob...

Transcribed Image Text:

Bill Bob, plans to sell toy cars over the internet and by mail order. Billy Bob buys the toy cars for $24 and sells them for $32. If payment by cheque accompanies the mail orders (estimated to be 50 per cent of sales), Billy Bob gives a 10 per cent discount. If customers include a credit card number for either internet or mail order sales (20 per cent of sales), customers receive a 5 per cent discount. The remaining collections are estimated to be: One month following Two months following Three months following 12% 8% 6% Uncollectable 4% Billy Bob has forecasted the following sales volumes: June 80 units 120 units 160 units July August September 105 units Billy Bob plans to pay his supplier 60 per cent in the month of purchase and 40 per cent in the month following. A 10 per cent discount is granted on payments made in the month of purchase Billy Bob has 40 toy cars on hand (purchased in May and to be paid for in June) and plans to maintain enough end-of- month inventory to meet 50 per cent of the next month's sales. Required Prepare schedules for monthly budgeted cash receipts and cash disbursements for this venture Bill Bob, plans to sell toy cars over the internet and by mail order. Billy Bob buys the toy cars for $24 and sells them for $32. If payment by cheque accompanies the mail orders (estimated to be 50 per cent of sales), Billy Bob gives a 10 per cent discount. If customers include a credit card number for either internet or mail order sales (20 per cent of sales), customers receive a 5 per cent discount. The remaining collections are estimated to be: One month following Two months following Three months following 12% 8% 6% Uncollectable 4% Billy Bob has forecasted the following sales volumes: June 80 units 120 units 160 units July August September 105 units Billy Bob plans to pay his supplier 60 per cent in the month of purchase and 40 per cent in the month following. A 10 per cent discount is granted on payments made in the month of purchase Billy Bob has 40 toy cars on hand (purchased in May and to be paid for in June) and plans to maintain enough end-of- month inventory to meet 50 per cent of the next month's sales. Required Prepare schedules for monthly budgeted cash receipts and cash disbursements for this venture

Answer rating: 100% (QA)

Computation of Purchases Particulars June July Aug Sep Opening ... View the full answer