t.mheducation.com/flow/connect.html Apps Networking & See.. ia Accounts Electron
ID: 2343320 • Letter: T
Question
t.mheducation.com/flow/connect.html Apps Networking & See.. ia Accounts Electronics Microsoft Employer Certifications-Ottawa-Study 2018-workout-wr Intersession 6: Problems Saved Help Save &Exit Check my u Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10] 12.5 points The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: $ 9,000 $ 26,000 $ 48,600 s 109,200 $ 29,175 $ 150,000 $ 13,625 Cash Accounts receivable Inventory Buiiding and equipment, net Accounts payable Common stock Retained earnings eBook Print References The gross margin is 25% of sales. b. Actual and budgeted sales data: March (actual) April May June July $ 65,000 $ 81,000 S 86,000 s 111,000 s 62,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory f. Monthly expenses are as follows: commissions, 12% of sales rent, $3,800 per month; other expenses (excluding depreciation), 6% Prev 1 or 2 scoreanswer >Explanation / Answer
1. Total Cash collection from customers :
81000*0.6
=48600
86000*0.6
=51600
111000*0.6
=66600
81000*0.4
=32400
86000*0.4
=34400
April may June Cash sale81000*0.6
=48600
86000*0.6
=51600
111000*0.6
=66600
Credit sale 26000 (March credit sale)81000*0.4
=32400
86000*0.4
=34400
Total cash 74600 84000 101000Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.