to the March credit sales, for example, shows that $81,000 of the $180,000 will
ID: 2476366 • Letter: T
Question
to the March credit sales, for example, shows that $81,000 of the $180,000 will be col- Caer is uncollectible. Applying s to t 536,000 in May, and $16.200 in June. All merchandise is purchased on credit: 80% of the April. id in the month following a purchase and the remaining 20% is paid in the second month. is paid in the mon fteI00,000 March purchases, $80,000 will be paid in April and $20,000 in May, Check Budged balance A 53.000 Mm succor, susoo a cash budget for April, May, and June for Sony Stereo. Show supporting calculations as needed. calculations as needed. May 44,000 June 34 800 Prepure a enick Company sells its product for $22 per unit. Its actual and budgeted sales follow Problem 20-78 Merchandising: Preparation and analysi of cash budgets with Units Dollars February (actual). 22,500 495,000 purchases budgets P4 April (budgeted) May (budgeted) 18,750 412.500 21,000 462.000 All sales are on credit. Recent experience shows that 40% of credit sales is collected in the month of te sde, 35% in the month after the sale, 23% in the second month after the sale, and 2% proves to be uncollect- de. The product's purchase price is $12 per unit. All purchases are payable within 21 days. Thus, 30% ofExplanation / Answer
4 ans
The following assumptions are taken on the details provided in the question above
The purchases payments are made within 21 days of the month means the purchases for march will be made in march
The purchases for march and April sales will be made in march and April itself
The purchase quantity for march is 19000 units and april is 18750 units
The purchase price per unit is $12
The table showing cash payments on product purchases for march and april are given below
5 Ans ) to calculate cash busget for march and april we need the opening balance of cash of Jan and no details of loan activity and interest details in the question above , can show the cash collections details as per credit terms mentioned in the problem , given below
Conmik company Purchases Budget and payments For the Month Ending March and april March April Total units to be purchased 19000 18750 Unit price ($) $12 12 Total cash payment($) $228,000 $225,0005Related Questions
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