D. Tomlinson Retail seeks your assistance in developing cash and other budget information for May, June,...
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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 102,400 Accounts receivable 984,000 Inventories Accounts payable 690,000 309,626 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 amounts and collects 60% of the billings within the discount period, 25% by the end of the month, and 9% by the end of the second month. The firm's experience suggests that 6% is likely to be uncollectible and is written off at the end of the third month. • Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month's units of ending inventory should equal 125% of the next month's cost of sales. The cost of each unit of inventory is $40. Selling, general, and administrative (SG&A) expenses, of which $2,900 is depreciation, equal 15% of the current month's sales. Actual and projected sales follow: Month March April May Dollars $ 822,000 840,000 Units Month 13,700 June 14,000 July 828,000 13,800 August Dollars Units $ 798,000 13,300 834,000 13,900 846,000 14,100 Required: 1. Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a schedule showing budgeted cash disbursements during June. 3. Prepare a schedule showing budgeted cash collections during May. 4. Determine gross and net balances of accounts receivable on May 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare schedules showing budgeted merchandise purchases for May and June. Cost of Goods Sold Total needed Required 3 Required 4 D. Tomlinson Retail Budgeted Merchandise Purchases May and June May Budgeted merchandise purchases June July Prepare a schedule showing budgeted cash disbursements during June. D. Tomlinson Retail Budgeted Cash Disbursements, June May Total payables Budgeted cash disbursements June Prepare a schedule showing budgeted cash collections during May. D. Tomlinson Retail Cash Collections May Within the discount period After the discount period Total cash collections Determine gross and net balances of accounts receivable on May 31. March May Sales Remaining AR % AR Balance (Gross) Bad-debt allowance AR Balance (Net) % April % % Total 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 102,400 Accounts receivable 984,000 Inventories Accounts payable 690,000 309,626 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 amounts and collects 60% of the billings within the discount period, 25% by the end of the month, and 9% by the end of the second month. The firm's experience suggests that 6% is likely to be uncollectible and is written off at the end of the third month. • Purchases and expenses. All purchases and expenses are on open account. The firm pays its payables over a 2-month period with 54% paid in the month of purchase. Each month's units of ending inventory should equal 125% of the next month's cost of sales. The cost of each unit of inventory is $40. Selling, general, and administrative (SG&A) expenses, of which $2,900 is depreciation, equal 15% of the current month's sales. Actual and projected sales follow: Month March April May Dollars $ 822,000 840,000 Units Month 13,700 June 14,000 July 828,000 13,800 August Dollars Units $ 798,000 13,300 834,000 13,900 846,000 14,100 Required: 1. Prepare schedules showing budgeted merchandise purchases for May and June. 2. Prepare a schedule showing budgeted cash disbursements during June. 3. Prepare a schedule showing budgeted cash collections during May. 4. Determine gross and net balances of accounts receivable on May 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare schedules showing budgeted merchandise purchases for May and June. Cost of Goods Sold Total needed Required 3 Required 4 D. Tomlinson Retail Budgeted Merchandise Purchases May and June May Budgeted merchandise purchases June July Prepare a schedule showing budgeted cash disbursements during June. D. Tomlinson Retail Budgeted Cash Disbursements, June May Total payables Budgeted cash disbursements June Prepare a schedule showing budgeted cash collections during May. D. Tomlinson Retail Cash Collections May Within the discount period After the discount period Total cash collections Determine gross and net balances of accounts receivable on May 31. March May Sales Remaining AR % AR Balance (Gross) Bad-debt allowance AR Balance (Net) % April % % Total
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To prepare the required schedules for D Tomlinson Retail well go step by step through each of the four parts of the question Required 1 Budgeted Merchandise Purchases for May and June To calculate the ... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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