The following data apply to the HASF Hardware Store and its 2011 budget

Forecast Sales

Jan

$200,000

Feb

$160,000

Mar

$180,000

Apr

$45,000

Balance Sheet Data

December 31,2010        

Cash

$80,000

Account receivable:

November sales

45000

December sales

50000

Inventory

54000

Account payable(merchandise)

27000

Other data are as follows:

Sales are on credit with 60% of sales collected in the same month after sale ,40% in the second month after sale
Cost of goods sold is 50% of sales
Other variables costs are 30% of sales paid in the month incurred
Inventories are to be 80% of next month’s budgeted sales requirements
Fixed expenses are $15000 per month; all require cash
Credit time period for purchases are 30 days
On basis of above information answer following questions

What will be the purchase in the month of March 2011?
What will be the purchase in the month of January 2011?
What will be the purchase in the month of February 2011?

Answer rating: 100% (QA)

Jan Feb March April Sales 200000 160000 80000 45000 COGS 50 100000 80000 ... View the full answer