10 2012042 Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stor 1 (40.5 KiB) Viewed 11 times
10 2012042 Artemis Inc Has Developed A Specialized Wholesale Business Selling Archery Equipment To Sporting Goods Stor 2 (45.86 KiB) Viewed 11 times
10 2012042 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 $270,000 for January, $280,000 for February, and $260,000 for March. • The company expects to collect cash from credit sales according to this pattern: 65% in the month of sale and 35% 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 45% 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 $62,000. At January 1, the beginning balance in the accounts payable account is $249,000 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. February Sales Schedule of Expected Cash Collections Accounts receivable January sales February sales Total cash collections January
At January 1, the beginning balance in the accounts payable account is $249,000. 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 < Peerees ***** February Required B > www
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