In: Accounting
Budgeted Sales:
| September | October | November | December | January | 
| 280,000 | 300,000 | 320,000 | 360,000 | 200,000 | 
Planning
Assumptions:
25% of all Sales are cash. Accounts receivable are collected 60% in
the month of sale, 30% in the next month, and with the final 10% in
the third month.
Cost of Goods sold is 40% of sales. Inventory is purchased in the
month prior to the sale, 70% is paid in the month of acquisition
and 30% is paid the next month.
Operating Expenses:
| Salaries | 60,000 | 
| Depreciation | 10,000 | 
| Rent | 20,000 | 
| Utilities | 6,000 | 
| Other | 5,000 | 
Commissions 2% of
prior month's sales.
Supplies 1% current month Cost of Goods sold.
What is the 12/31 budgeted Accounts Receivable?
What is the budgeted balance for Accounts Payable at 12/31 for
Inventory purchases?
What is the budgeted amount of Operating Expenses for
December?
I am so confused, and I can't find how to figure these out in my
textbook
Budgeted Accounts Receivable = $108000+24000 =
$132000
From December Sales = $360000 x 75% x 40% = $108000
From November Sales = $320000 x 75% x 10% = $24000
Budgeted Accounts Payable = $200000 x 40% x 30% = $24000
Budgeted Operating Expenses
| December | ||
| Salaries | $ 60,000 | |
| Depreciation | $ 10,000 | |
| Rent | $ 20,000 | |
| Utilities | $ 6,000 | |
| Other | $ 5,000 | |
| Commissions | $ 6,400 | =320000*2% | 
| Supplies | $ 1,440 | =360000*40%*1% | 
| Total Operating Expenses | $ 1,08,840 |