Question: I have already completed part c , I just need help with part d . PLEASE SHOW WORK c . Prepare a sample sales budget
I have already completed part c I just need help with part d PLEASE SHOW WORK
c Prepare a sample sales budget and a schedule of expected cash receipts using the following assumptions. Getaway estimates January
sales will be $ of which $ will be cash and $ will be credit. The ratio of cash sales to sales on account is
expected to remain constant over the threemonth period. The company expects sales to increase percent per month. The company
expects to collect percent of the accounts receivable generated by credit sales in the month following the sale. Use this information
to determine the amount of accounts receivable that Getaway would report on the March pro forma balance sheet and the amount
of sales it would report on the first quarter pro forma income statement.
d Prepare a sample inventory purchases budget using the following assumptions. Cost of goods sold is percent of sales. The company
desires to maintain a minimum ending inventory equal to percent of the following month's cost of goods sold. Getaway makes all
inventory purchases on account. The company pays percent of accounts payable in the month of purchase. It pays the remaining
percent in the following month. Prepare a schedule of expected cash payments for inventory purchases. Use this information to
determine the amount of cost of goods sold Getaway would report on the first quarter pro forma income statement and the amounts of
ending inventory and accounts payable it would report on the March pro forma balance sheet.
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