FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Purchases in May were $65,000, while expected purchases for June and July are $80,000 and $95,000, respectively. All purchases are paid 35% in the month of purchase and 65% in the following month. At what amount are July payments for purchases budgeted?
$85,250 |
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$89,750 |
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$95,000 |
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$70,250 |
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- Griffith Company has budgeted purchases of inventory for December of $105,000. Expected beginning inventory on December 1 and ending inventory on December 31 are $120,000 and $129,000, respectively. If the cost of goods sold averages 75% of sales, what are budgeted sales for December? A. $114,000 B. $152,000 C. $120,000 D. $128,000arrow_forwardKomodo Supply Company's monthly sales budget is as follows: April $160,000, May $130,000, and June $120,000. The company's policy is to set selling prices to earn a 30% gross profit on sales revenue and to maintain an ending inventory balance equal to 40% of the next month's cost of goods sold. What is the dollar amount of inventory purchases that is budgeted for the month of May? O $87,800 $88.200 O $89.600 $93,800 O None of the abovearrow_forward5arrow_forward
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- Capstone Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $399,000 for September and $319,000 for October, what are the budgeted cash receipts from sales on account for October?$fill in the blank 1arrow_forwardCOVID19Co. has forecast purchases on account to be $316.000 in March. $377.000 in April. $429.00o in May, and $491.000 in June. Sixty percent of purchase paid for in the month of purchase, the remaining 40% are paid in the following month. What is the budgeted Accounts Payable balance for April 30?arrow_forward
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