Data regarding a company's operations follow: Sales are budgeted at $330,000 for November, $340,000 for...

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Data regarding a company's operations follow: • Sales are budgeted at $330,000 for November, $340,000 for December, and $320,000 for January. • Collections are expected to be 60% in the month of sale and 40% in the month following the sale. • The cost of goods sold is 80% of sales. • The company desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $68,000. • The November beginning balance in the accounts payable account is $255,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. Show each month individually. b. Prepare a Merchandise Purchases Budget for November and December. Show each month individually. Data regarding a company's operations follow: • Sales are budgeted at $330,000 for November, $340,000 for December, and $320,000 for January. • Collections are expected to be 60% in the month of sale and 40% in the month following the sale. • The cost of goods sold is 80% of sales. • The company desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. The November beginning balance in the accounts receivable account is $68,000. • The November beginning balance in the accounts payable account is $255,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December. Show each month individually. b. Prepare a Merchandise Purchases Budget for November and December. Show each month individually.

Answer rating: 100% (QA)

Req A Expected cash collection for November and De... View the full answer