Capp Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow:
| %u2022 |
Sales are budgeted at $460,000 for November, $470,000 for December, and $450,000 for January.
|
| %u2022 |
Collections are expected to be 55% in the month of sale, 42% in the month following the sale, and 3% uncollectible.
|
| %u2022 |
The cost of goods sold is 60% of sales. |
| %u2022 |
The company desires an ending merchandise inventory equal to 35% of the following month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
|
| %u2022 |
The November beginning balance in the accounts receivable account is $81,000. |
| %u2022 |
The November beginning balance in the accounts payable account is $268,000. |
Required:
Prepare a Schedule of Expected Cash Collections for November and December. (Omit the "$" sign in your response.)
Capp Corporation
Schedule of Expected Cash Collections |
|
November |
December |
| Sales |
$ |
$ |
| Schedule of Expected Cash Collections |
|
|
| Accounts receivable |
$ |
|
| November sales |
|
$ |
| December sales |
|
|
|
|
|
| Total cash collections |
$ |
$ |
|
|
|
|
Prepare a Merchandise Purchases Budget for November and December. (Input all amounts as positive values. Omit the "$" sign in your response.)
Capp Corporation
Merchandise Purchases Budget |
|
November |
December |
| Budgeted cost of goods sold |
$ |
$ |
| (Click to select) Deduct Add : (Click to select) Beginning merchandise inventory Desired ending merchandising inventory |
|
|
|
|
|
| Total needs |
|
|
| (Click to select) Add Deduct : (Click to select) Beginning merchandise inventory Desired ending merchandising inventory |
|
|
|
|
|
| Required purchase |
$ |