- Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stores The Art 1 (58.82 KiB) Viewed 12 times
- Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stores The Art 2 (60.06 KiB) Viewed 12 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 $260,000 for January, $270,000 for February, and $250,000 for March • The company expects to collect cash from credit sales according to this pattern: 60% in the month of sale and 40% in the month following the sale. Cost of goods sold is expected to be approximately 60% of sales. Artemis would like to have inventory at the end of each month equal to 40% 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 $61,000. At January 1, the beginning balance in the accounts payable account is $248,000. . 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 < Required A 0 0$ February 0 0 Fequend