Please show all work. Thank you! The following information relates to the next F

Question

Please show all work. Thank you! The following information relates to the next FOUR (4) questions: Helena Creations is a retailer of fashion accessories. Budget data regarding the store's oera follow: Budgeted Sales: January February March S340,000 S 320,000 310,000 Expected Colections (240000s. (237.500 60% in the month of sale 25% in the month following the sale 10% in the second month following the sale Cost of Goods Sold: Desired Ending Inventory of Merchandise: Payment for Merchandise Purchased: 5% uncollectible 75% Of Sales 60% ofnext month's Cost ofGoods Sold 50% in the month of purchase 50% in the month following the purchase (of which depreciation, $18,000). 8 Budgeted February cash disbursements for merchandise purchases would be: S 235,500 B S240,750 C 247,500 D. S321,000 E. None of the above. PL

Explanation / Answer

Calculate purchase :

Cash disbursement in february = (246000/2+235500/2) = 240750

so answer is b) $240750

january February Sales 340000 320000 Cost of goods sold 255000 240000 Add: Desired ending inventory 144000 139500 Less; Beginning inventory (153000) (144000) Required purchase 246000 235500

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