12. In may 2014, the budget committee of Bunker Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June.
1. Expected sales: June $1,500.000, July %1,800,000
2 Cost of goods sold is expected to be 75% of sales.
3 Desired ending merchandise inventory is 40% of the following (next) months of goods sold.
4 The beginning inventory at June 1 will be the desired amount.
Instructions:
- Compute the budgeted merchandise purchases for June.
- Prepare the budgeted income statement for June through gross profit.
10. O’Reilly Company’s projected sales as follow:
August $470,000
September $540,000
October $660,000
O’Really estimates that it will collect 30% in the month of sales, 50% in the month after the sales, and 18% in the second month following the sale. Two percent of all sales are estimated to be bad debts (i.e the amount will never be collected)
Instructions: How much are O’Reilly Company’s budgeted cash receipts for October?
I do have few more…..how much you will charge????
