Smith Comer Shoppe is a local convenience store with the following information ?

Question

Smith Comer Shoppe is a local convenience store with the following information ?[Click the icon to view the information.) Read the recuirements. Requirement 1. Prepare the sales budget for November and December. Data Table Smith Corner Shoppe Sales Budget For the Months of November and December October sales were $260,000 sales are projected to go up by 8% in November (from the October sales) and another 25% in December (from the November sales) and then return to the October evel in January 25% of sales are made in cash, while the remaining 75% are paid by credit or debit cards The credit card companies and banks (debit card issuers) charge a 4% transaction fee, and deposit the net amount (sales price less the transaction fee) in the store's bank account daiy Smith Corner Shoppe's gross profit is 30% of its sales revenue " Novcmber December . Requirements Cash salcs Credit sales Total sales " For the next several months, the store wants to maintain an ending merchandise Prepare the following budgets for November and December inventory equal to 513 000 + 20% of the next month's cost of goods sold. The September 30 inventory was $49,400 Expected monthly operating expenses include . Sales budget 2. Cost of goods sold, inventory, and purchases budget 3. Operating expense budgel 4. Budgeted income statement Wages of store workers are S8,700 per month Utities expense of 51,500 in November and S1,600 in December Property tax expense of $2,600 per month Property and liablity insurance expense of S400 per month Depreciation expense of 54,000 per month Transaction fees as stated above, are 4% of credit and debit card sales Print Done Print Done

Explanation / Answer

260000×1.08

=280800

280800×1.25

=351000

f) commission @4% of (c) I.e sales via cards

8700+1500+2600+

400+4000=17200

8700+1600+2600+

400+4000=17300

Statement showing inventory and purchas

Purchase (COGS + closing stock- opening stock)

* Sales for January will be 260000

Cost of good sold @70% = 182000

20% of cost of good sold = 36400

Particulars October November December a)Total sales 260000

260000×1.08

=280800

280800×1.25

=351000

b)Cash sales @25% of (a) 65000 70200 87750 c)Sale via cards debit or credit 195000 210600 263250 d)Cost of goods sold @ 70% of (a) 182000 195560 245700 e)Gross profit@30% of (a) 78000 84240 105300

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