Maria Fashions Bhd supplies to apparel and handbags to many boutiques and stores. Data regarding the store's operations follow Statement of Financial Position as of 31 October Assets RM Cash 50,000 Account receivables 142,000 Inventory 327,600 Property, plant, and equipment (net of RM1,008,,000 accumulated depreciation) 2,176.,000 Total Assets 2,695,600 Liabilities and stockholders’ equity Accounts payable 464,000 Common stock 1,400,000 Retained earnings 831,600 Total liabilities and stockholders’ equity 2,695,600. 

1. Sales are budgeted at RM780,000 for November, RM740,000 for December, and RM760,000 for January. 

2. Collections are expected to be 90% in the month of sale, 5% in the month following the sale, and 5% uncollectible. 

3. The cost of goods sold is 60% of sales. 

4. The company purchases 70% of its merchandise in the month prior to the month of sale and 30% in the month of sale. Payment for merchandise is made in the month following the purchase. 

5. Other monthly expenses to be paid in cash are RM43,600. 

6. Monthly depreciation is RM36,000. 

7. Ignore taxes.

Required: 

a) Prepare a Schedule of Expected Cash Collections for November and December. 

b) Prepare a Merchandise Purchases Budget for November and December. 

c) Prepare Cash Budgets for November and December. 

d) Prepare Budgeted Profit or Loss Statements for November and December. 

e) Prepare a Budgeted Statement of Financial Position for as of December. 

Answer rating: 100% (QA)

a October Sales November Sales December Sales Total Cash Collections b Sch... View the full answer