i need help with this merchandise budget Dimsdale Sports, a merchandising company, reports the following balance sheet at December 31.DIMSDALE SPORTS COMPANYBalance SheetDecember 31AssetsCashAccounts receivableInventoryEquipmentLess: Accumulated depreciationEquipment, netTotal assetsLiabilitiesLiabilities and EquityAccounts payableLoan payableTaxes payable (due March 15)Equity$ 528,00066,000$ 375,00013,00088,000$ 22,000520,000157,500$ 470,500215,000462,000$ 1,161,500$ 476,000Common stockRetained earningsTotal stockholders' equityTotal liabilities and equityTo prepare a master budget for January, February, and March, use the following information.685,500$ 1,161,500a. The company's single product is purchased for $30 per unit and resold for $57 per unit. The Inventory level of 5,250 units onDecember 31 is more than management's desired level, which is 20% of the next month's budgeted sales units. Budgeted sales areJanuary, 7,250 units; February, 9,000 units; March, 10,500 units; and April, 10,500 units. All sales are on credit.b. Cash receipts from sales are budgeted as follows: January, $269,638; February, $738,403; March, $517,639.c. Cash payments for merchandise purchases are budgeted as follows: January, $60,000; February, $337,800; March, $147,000.d. Sales commissions equal to 20% of sales dollars are paid each month. Sales salaries (excluding commissions) are $6,000 permonth.e. General and administrative salaries are $12,000 per month. Maintenance expense equals $2,000 per month and is paid in cash.f. New equipment purchases are budgeted as follows: January, $36,000; February, $93,600; and March, $19,200. Budgeteddepreciation expense is January, $ 5,875; February, $6,850; and March, $7,050.g. The company budgets a land purchase at the end of March at a cost of $150,000, which will be paid with cash on the last day of themonth.h. The company has an agreement with its bank to obtain additional loans as needed. The Interest rate is 1% per month and Interest ispaid at each month-end based on the beginning-month balance. Partial or full payments on these loans are made on the last day ofthe month. The company maintains a minimum ending cash balance of $22,000 at the end of each month.1. The Income tax rate for the company is 39%. Income taxes on the first quarter's Income will not be paid until April 15. Merchandise purchases budgets.Calculation of Desired ending inventoryNext period budgeted sales unitsRatio of inventory to future salesTotal required unitsUnits to be purchasedCost per unitCost of merchandise purchasesDIMSDALE SPORTSMerchandise Purchases BudgetJanuaryFebruaryMarch

Merchandise Purchase Budgets :— Financial plan of the organisation that reports the total estimates…

Merchandise purchases budgets. Calculation of Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Total required units Units to be purchased Cost per unit Cost of merchandise purchases DIMSDALE SPORTS Merchandise Purchases Budget January February March

Merchandise purchases budgets. Calculation of Desired ending inventory Next period budgeted sales units Ratio of inventory to future sales Total required units Units to be purchased Cost per unit Cost of merchandise purchases DIMSDALE SPORTS Merchandise Purchases Budget January February March

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 7MCQ: Before a direct materials purchases budget can be prepared, you should first a. prepare a sales...

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Prepare Schedule of Expected Cash collections ,Merchandise purchase budget,Schedule of cash dusbursement for merchandise purchase and cash Budget and also prepare Absorption Costing Income Statement and balance sheet as of March 31
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow • Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January • Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 70% of sales. • The compary desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. - The November beginning balance in the accounts receivable account is $82,000. The November beginning balance in the accounts payable account is $269,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December.…
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4G . 4G S 9:58 以令 Shrek & Fiona Company Statement of Financial Position As of December 31, 2020 Current Assets Current Liabilities Cash 18,000 Accounts Payable (N2) 240,000 Accounts Receivable (N1) Taxes Payable Dividends Payable 1,192,000 13,200 Less: Uncollectible accounts (22,400) 1,169,600 500,000 Inventories Total Current Liabilities 753,200 Raw Materials (12,000 pounds) 30,000 Finished Goods (4,000 units) 140,000 170,000 Total Current Assets 1,357,600 Stockholder's Equity Common Stock (100,000 shares) 500,000 Non-current Assets Retained Earnings 360,400 Property, plant, and equipment 320,000 Total Stockholder's Equity 860,400 Less: Accumulated depreciation (64,000) 256,000 Total Assets 1,613,600 Total Liabilities and SHE 1,613,600 N1 2020 3rd quarter sales P2,500,000 2020 4th quarter sales P3,100,000 200,000 992,000 1,192,000 75,000 165,000 N2 2020 3rd quarter purchases P300,000 2020 4th quarter purchases P330,000 240,000 1. Estimated unit sales for the first quarter of 2021 is…
Weller Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: • Sales are budgeted at $350,000 for November, $370,000 for December, and $360,000 for January. • Collections are expected to be 80% in the month of sale and 20% in the month following the sale. • The cost of goods sold is 69% of sales. • The company desires an ending merchandise inventory equal to 80% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $20,100. Monthly depreciation is $19,900. Ignore taxes. Balance Sheet October 31 Assets Cash $ 20,900 81,900 Accounts receivable Merchandise inventory 193,200 Property, plant and equipment (net of $585,000 accumulated depreciation) 995,000 Total assets $1,291,000 Liabilities and Stockholders' Equity Accounts payable $ 194,900 500,000 596,100 Common stock Retained earnings Total…
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Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income. *Includes $30,000 of depreciation each mon. April $ 700,000 490,000 210,000 88,000 49,000 137,000 $ 73,000 May $ 870,000 609,000 261,000 107,000 66,400 173,400 $ 87,600 June $ 580,000 406,000 174,000 69,000 42,800 111,800 $ 62,200 July $ 480,000 336,000 144,000 48,000 46,000 94,000 $ 50,000 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale, 70% collected in the first month following the month of sale, and the remaining 20%…
Carmen Company sells jar candles. The sales forecast (units) for the coming months is: April 210 May 140 June 150 July 200 August 160 Each candle costs $ 10. The ending inventory policy is 40% 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 $2,460. Required: a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign.a. Prepare a purchases budget for the quarter ending June 30. Note: Deductible values must be indicated with a minus sign. b. Prepare a cash payments budget for the quarter ending June 30.
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