question archive The following is actual information regarding the operations of a wholesaler company

The following is actual information regarding the operations of a wholesaler company

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The following is actual information regarding the operations of a wholesaler company.Cash$3,000Accounts Receivables$13,300Inventory$22,960Accounts Payable$17,002Actual and Budgeted sales dollar Data-Sales Budget:March (actual)$38,000April$41,000May$42,000June$40,000July$43,000Sales are following types: 65% Cash Sales collected in month of sale.35% Credit Sales collected in the following month of June.Credit sales are collected in the month following sale. The account receivable at March 31 is a result of March credit sale.Cost of goods sold equals: 80% of sales priceAt the end of each month, inventory is to be on hand (ending inventory) equal to 70% of following month?s sales needs, stated at cost. Therefore, inventory on hand on March 31st is April?s sales *.8 * .7.Inventory purchases are paid: 47% in month of purchase53% in month of purchaseThe accounts payable at March 31st are a result of March purchases of inventory.Monthly selling, general administrative expenses are as follows and are paid in the month incurred if it is a cash expense.Salaries and wages: 12% of sales dollarRent: $2,000Other cash expenses: 4% of sales dollarAdvertising: $1,000Depreciation: $900 for April onlyDepreciation: $1,000 per the month of May and JuneEquipment purchased for cash in May: $1,000Answer the following questions, based on the budget template provided.1. Prepare a Cash Receipts Budget for the quarter ending June 30th.2. Prepare a Cash Receipts Budget for the quarter ending June 30th.3. Prepare a Selling and Administrative Expense Budget.4. Prepare the cash distribution budget.5. Prepare the cash budget.6. Prepare a budgeted income statement for the quarter ending June 30th.7. What do you think about the survivability of the business.Cash collections for the quarter ending June 30AprilMayJuneQuarterSales Revenue(Given)$41,000Cash sales collected in month sale65%$26,650Credit sales Collected in following month35%Total Cash receiptsMerchandise purchase budgetFor the quarter ended June 30MarchAprilMayJuneQuarterBudget Cost of goods sold$30,400Desired Ending inventory22,960Total needs53,360Less: Beginning Inventory21,280Total purchase cost$32,080Selling, General and Administrative Expense BudgetFor the quarter ended June 30AprilMayJuneQuarterSalesVariable selling and admin. expense %Total variable cash expensesFixed Selling and admin. expenses:Total fixed expensesTotal selling and administrative expensesCash Disbursements BudgetFor the quarter ended June 30AprilMayJuneQuarterPayments for Purchases (from Schedule 2)Cash payments for purchases paid in month47%Cash payments made in month after purchase53%Total Cash payments for merchandise purchasedOther cash disbursementsTotal variable cash expensesRentAdvertisingCash Payment for EquipmentTotal of other cash disbursementsTotal cash DisbursementsCash BudgetFor the quarter ended June 30AprilMayJuneQuarterBeginning cash$3,000Add: Cash ReceiptsCash AvailableLess Cash Disbursements:Ending cashBudgeted Income StatementFor the quarter ended June 30Sales123,000Cost of goods soldGross marginLess selling and administrative ExpensesOperating income

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