Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Artemis costaccountants are going through their quarterly budgeting process and have determined that• Sales (in dollars) are expected to be $260,000 for January, $270,000 for February, and $250,000 for March• The company expects to collect cash from credit sales according to this pattern: 60% in the month of sale and 40% in the monthfollowing the sale.Cost of goods sold is expected to be approximately 60% of sales.Artemis would like to have inventory at the end of each month equal to 40% of the cost of goods sold budgeted for the followingmonth. When Artemis purchases archery equipment for its suppliers, they generally make payment in the month following thepurchase...• At January 1, the beginning balance in the accounts receivable account is $61,000.At January 1, the beginning balance in the accounts payable account is $248,000..Required:a. Prepare a Schedule of Expected Cash Collections for January and Februaryb. Prepare a Merchandise Purchases Budget for January and FebruaryComplete this question by entering your answers in the tabs below.Required A Required BPrepare a Merchandise Purchases Budget for January and February.Merchandise Purchases BudgetCost of goods soldTotal needsRequired purchases$January< Required A00$February00Fequend Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Artemis costaccountants are going through their quarterly budgeting process and have determined that• Sales (in dollars) are expected to be $260,000 for January, $270,000 for February, and $250,000 for March.• The company expects to collect cash from credit sales according to this pattern: 60% in the month of sale and 40% in the monthfollowing the sale.• Cost of goods sold is expected to be approximately 60% of sales.Artemis would like to have inventory at the end of each month equal to 40% of the cost of goods sold budgeted for the followingmonth. When Artemis purchases archery equipment for its suppliers, they generally make payment in the month following thepurchase..• At January 1, the beginning balance in the accounts receivable account is $61,000.• At January 1, the beginning balance in the accounts payable account is $248,000Required:a. Prepare a Schedule of Expected Cash Collections for January and Februaryb. Prepare a Merchandise Purchases Budget for January and FebruaryComplete this question by entering your answers in the tabs below.Required A Required BPrepare a Schedule of Expected Cash Collections for January and February.JanuarySalesSchedule of Expected Cash CollectionsAccounts receivableJanuary salesFebruary salesTotal cash collections$$260.000 $0 $February< Required A270,0000Required B >

Given in the question: Month Sales January $2,60,000 February $2,70,000…

Answered: Required: a. Prepare a Schedule of…

Required: a. Prepare a Schedule of Expected Cash Collections for January and February b. Prepare a Merchandise Purchases Budget for January and February

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.
Assets Cash Minden Company Balance Sheet April 30 Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Note payable Common stock Retained earnings Total liabilities and stockholders' equity $ 11, 100 72,500 37,500 238,000 $ 359,100 $ 68,000 19,400 180,000 91,700 $ 359,100 The company is in the process of preparing a budget for May and assembled the following data: a. Sales are budgeted at $255,000 for May. Of these sales, $76,500 will be for cash; the remainder will be credit sales. One-half of a month's credit sales are collected in the month the sales are made, and the remainder are collected in the following month. All of the April 30 accounts receivable will be collected in May. b. Purchases of inventory are expected to total $189,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following…
The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July is summarized as follows: a. Estimated sales for July by sales territory: Maine: Backyard Chef. 310 units at $700 per unit 150 units at $1,200 per unit Master Chef. Vermont: Backyard Chef. 240 units at $750 per unit Master Chef 110 units at $1,300 per unit New Hampshire: Backyard Chef. Master Chef 360 units at $750 per unit 180 units at $1,400 per unit b. Estimated inventories at July 1: Direct materials: Finished products: Grates.. 290 units Backyard Chef 30 units Stainless steel. 1,500 Ibs. Master Chef. 32 units Burner subassemblies 170 units Shelves.. 340 units c. Desired inventories at July 31: Direct materials: Finished products: Backyard Chef Master Chef.. Grates. 340 units 40 units Stainless steel. 1,800 lbs. 22 units Burner subassemblies 155 units Shelves..…
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $163,000. About 85% of sales is cash; the remainder is on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month. c. Food and supplies purchases, all on account, are expected to be $103,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. e. Utilities average $5,950 per month. Rent on the building is $4,100 per month. f. Insurance is paid…
Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care equipment, which occur during May. The following information has been assembled to assist in preparing 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 $28,000 of depreciation each month. April May June $ 600,000 $1,100,000 $ 560,000 420,000 770,000 392,000 180,000 330,000 168,000 111,000 48,000 159,000 105,000 46,000 64,800 44,000 169,800 108,600 90,000 $ 21,000 $ 160,200 $ 59,400 $ 48,000 July $460,000 322,000 138,000 67,000 41,600 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10%…
ll. Subject Accounting
The following information is available from various budgets for the current period: Amount Budget Cash budget Account Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation - Equipment Schedule of cash receipts from customers Inventory, purchases, and cost of goods sold budget Selling and administrative expense budget Capital expenditures budget OA. $173,000 OB. $164,000 OC. $159,000 O D. $162,000 $28,000 Merchandise Inventory Insurance Expense (expense incurred during the period) Equipment Depreciation Expense Equipment (expense incurred during the period) Selling and administrative expense budget 2,000 The following balances are available from the balance sheet at the end of the previous year: $5,000 28,000 7,000 What would be the amount of total assets on the budgeted balance sheet? 35,000 41,000 2,000 36,000
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Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Prepare a cash budget for January and February in columnar form. please dont provide answer in an image format thnku
Perez Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Perez expects sales in January year 1 to total $210,000 and to increase 20 percent per month in February and March. All sales are on account. Perez expects to collect 68 percent of accounts receivable in the month of sale, 24 percent in the month following the sale, and 8 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1. Determine the amount of sales revenue Perez will report on the year 1 first quarterly pro forma income statement. Prepare a cash receipts schedule for the first quarter of year 1. Determine the amount of accounts receivable as of March 31, year 1. Complete this question by entering your answers in the tabs below. Prepare a sales budget for the first quarter of year 1.