Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April...

  

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Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues. $ 256,000 $ 266,000 $ 291,000 $ 347,000 $ 358,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 50% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $38,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $132,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases % May % June % July % August % b. Prepare a cash payments budget for April through July. From This Month From Last Month Cash Payments $ April Cash Sales Collected in the Month of Sale Collected the Following Month Cash Collected 0 $ May $ 0 $ April June c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.) 0 $ 0 $ May July 0 0 $ June 0 $ July Carmen is a retailer of scrapbooking products. The sales forecast for the coming months is: April May June July August Revenues. $ 256,000 $ 266,000 $ 291,000 $ 347,000 $ 358,000 Carmen's sales are 80% cash and 20% store credit. The credit sales are collected 50% in the month of sale, the remainder the following month. Accounts receivable on April 1 are $38,000. Carmen's cost of sales averages 60% of revenues. The inventory policy is to carry 30% of next month's sales needs. April 1 inventory will be as expected under the policy. Carmen pays for purchases 30% in the month of purchase and 70% the following month. Accounts payable on April 1 is $132,000. a. Prepare a purchases budget for as many months as is possible. Sales Cost of Sales Percentage Cost of Sales Ending Inv Beginning Inv Purchases % May % June % July % August % b. Prepare a cash payments budget for April through July. From This Month From Last Month Cash Payments $ April Cash Sales Collected in the Month of Sale Collected the Following Month Cash Collected 0 $ May $ 0 $ April June c. Prepare a cash receipts budget for April through July. (Do not round intermediate calculations.) 0 $ 0 $ May July 0 0 $ June 0 $ July

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a Prepare a Purchases budget Sales Cost of Sales Percentage Cost of Sales Add Ending Inventory Less Beginning Inventory Purchases April Purchases budg... View the full answer