$ DL 4 E IOS F3 D Chapter 21 Homework Navigation Finish attempt.... Question 2 Not complete Marked out of 45.00 3 4 Month Actual Sales Month Budgeted Sales $ 162,000 May June Purchases and Cash Budgets On July 1, MTC Wholesalers had a cash balance of $315,000 and accounts payable (related to inventory purchases) of $178,200. Actual sales for May and June, and budgeted sales for July, August, September, and October are: $270,000 July 288,000 August September October R Inventory required, current sales $ Desired ending inventory Total inventory needs Less beginning inventory Purchases All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collecte during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-ha next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in month after purchase. Operating costs are estimated at $50,400 each month and are paid during the month incurred. Required Prepare purchases and cash budgets for July, August, and September. Do not use a negative sign with your answers. MTC Wholesalers Purchases Budget For the Months of July, August, and September July August F Cash balance, beginning $ Cash receipts Current month's sales Previous month's sales Sales two months prior Total receipts Cash available F4 Do not use a negative sign with your answers. MTC Wholesalers Cash Budget For the Months of July, August, and September July August % 5 $ T 0 $ 0 0 DOO 144,000 180,000 216,000 0 0 F5 G 0 $ 0 0 0 0 $ P Flag question 0 0 0 0 $ OOC A eee 6 0 $ 0 0 September 0 0 $ September 0 Y 0 0 0 0 0 F6 0 0 0 H 0 R & 7 F7 8 J F8 ( eBook Print 9 K F9 ) F10 0 33% P Connect CAPS F11 *** JUG