Question

Purchases and Cash Budgets
On July 1, MTC Wholesalers had a cash balance of $350,000 and accounts payable of $198,000. Actual sales for May and June, and budgeted sales for July, August, September, and October are:

Month	Actual Sales	Month	Budgeted Sales
May	$300,000	July	$ 180,000
June	320,000	August	160,000
		September	200,000
		October	240,000

All sales are on credit with 75 percent collected during the month of sale, 20 percent collected during the next month, and 5 percent collected during the second month following the month of sale. Cost of goods sold averages 70 percent of sales revenue. Ending inventory is one-half of the next month's predicted cost of sales. The other half of the merchandise is acquired during the month of sale. All purchases are paid for in the month after purchase. Operating costs are estimated at $56,000 each month and are paid during the month incurred.

Required
Prepare purchases and cash budgets for July, August, and September.

Do not use a negative sign with your answers.

MTC Wholesalers
Purchases Budget
For the Months of July, August, and September
		July	August	September
Inventory required, current sales		$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00
Desired ending inventory		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Total inventory needs		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Less beginning inventory		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Purchases		$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00

Do not use a negative sign with your answers.

MTC Wholesalers
Cash Budget
For the Months of July, August, and September
		July	August	September
Cash balance, beginning		$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00
Cash receipts
Current month's sales		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Previous month's sales		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Sales two months prior		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Total receipts		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Cash available		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Cash disbursements:
Purchases		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Operating costs		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Total disbursements		Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00	Answer 0.00 points out of 1.00
Cash balance, ending		$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00	$Answer 0.00 points out of 1.00

***Please show work***

Answer 1

October is only for workings.