Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Art

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Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stores The Art 1 (48.14 KiB) Viewed 13 times

Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stores The Art 2 (46.25 KiB) Viewed 13 times

Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Artemis cost accountants are going through their quarterly budgeting process and have determined that: • Sales (in dollars) are expected to be $240,000 for January, $250,000 for February, and $230,000 for March. • The company expects to collect cash from credit sales according to this pattern: 45% in the month of sale and 55% in the month following the sale. • Cost of goods sold is expected to be approximately 75% of sales. • Artemis would like to have inventory at the end of each month equal to 25% of the cost of goods sold budgeted for the following month. When Artemis purchases archery equipment for its suppliers, they generally make payment in the month following the purchase. • At January 1, the beginning balance in the accounts receivable account is $59,000. • At January 1, the beginning balance in the accounts payable account is $246,000. Required: a. Prepare a Schedule of Expected Cash Collections for January and February b. Prepare a Merchandise Purchases Budget for January and February Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for January and February. January Sales Schedule of Expected Cash Collections Accounts receivable January sales February sales Total cash collections February

Artemis, Inc. has developed a specialized wholesale business selling archery equipment to sporting goods stores. The Artemis cost accountants are going through their quarterly budgeting process and have determined that: • Sales (in dollars) are expected to be $240,000 for January, $250,000 for February, and $230,000 for March. • The company expects to collect cash from credit sales according to this pattern: 45% in the month of sale and 55% in the month following the sale. • Cost of goods sold is expected to be approximately 75% of sales. • Artemis would like to have inventory at the end of each month equal to 25% of the cost of goods sold budgeted for the following -month. When Artemis purchases archery equipment for its suppliers, they generally make payment in the month following the purchase. At January 1, the beginning balance in the accounts receivable account is $59,000. • At January 1, the beginning balance in the accounts payable account is $246,000. Required: a. Prepare a Schedule of Expected Cash Collections for January and February b. Prepare a Merchandise Purchases Budget for January and February Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Merchandise Purchases Budget for January and February. Merchandise Purchases Budget Cost of goods sold Total needs Required purchases January February