Answer Happy

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 $390,000 for January, $400,000 for February, and $380,000 for March. . The company expects to collect cash from credit sales according to this pattern: 55% in the month of sale and 45% in the month following the sale. . Cost of goods sold is expected to be approximately 80% of sales. Artemis would like to have inventory at the end of each month equal to 35% 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 $74.000. • At January 1, the beginning balance in the accounts payable account is $261,000. Required: a Prepare a Schedule of Expected Cash Collections for January and February b. Prepare a Merchandise Purchases Budget for January and February

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

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