On July 1, MTC Wholesalers had a cash balance of $175,000 and accounts payable of $99,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

Month	Actual Sales	Month	Budgeted Sales
May	$150,000	July	$ 90,000
June	160,000	August	80,000
		September	100,000
		October	120,000

All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the 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 the month after purchase. Operating costs are estimated at $28,000 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	September
Inventory required, current sales		$Answer	$Answer	$Answer
Desired ending inventory		Answer	Answer	Answer
Total inventory needs		Answer	Answer	Answer
Less beginning inventory		Answer	Answer	Answer
Purchases		$Answer	$Answer	$Answer

Do not use a negative sign with your answers.

MTC Wholesalers
Cash Budget
For the Months of July, August, and September
		July	August	September
Cash balance, beginning		$Answer	$Answer	$Answer
Cash receipts
Current month's sales		Answer	Answer	Answer
Previous month's sales		Answer	Answer	Answer
Sales two months prior		Answer	Answer	Answer
Total receipts		Answer	Answer	Answer
Cash available		Answer	Answer	Answer
Cash disbursements:
Purchases		Answer	Answer	Answer
Operating costs		Answer	Answer	Answer
Total disbursements		Answer	Answer	Answer
Cash balance, ending		$Answer	$Answer	$Answer

Answer rating: 100% (QA)

Solution MTC Wholesalers Purchases Budget For the Months of July August and September July Inventory required current sales 112500 75 of 90000 Desired ... View the full answer