This paper circulates around the core theme of Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. Remember there is a difference between units and $of the units – use the right figures in the right spots together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
On March 31, Streuling Enterprises, a
merchandising firm, had an inventory of 38,000 units, and it had accounts
receivable totalling $85,000. Sales, in units, have been budgeted as follows
for the next four months:
|
April
|
60,000
|
|
May
|
75,000
|
|
June
|
90,000
|
|
July
|
81,000
|
Streuling’s board of directors has established a
policy to commence in April that the inventory at the end of each month should
contain 40% of the units required for the following month’s budgeted sales.
The selling price is $2 per unit. One-third of sales
are paid for by customers in the month of the sale; the balance is collected in
the following month.
Required:
a) Prepare a merchandise purchases budget showing how
many units should be purchased for each of the months April, May, and June. Remember
there is a difference between units and $of the units – use the right figures
in the right spots
b) Prepare a schedule of expected cash collections for
each of the months April, May, and June. Remember the existing A/R
balance
