(Solution) 13-47. Budgeted Purchases And Cash Flows. Delhi, Inc., Seeks Your Assistance In Developing Cash And Other Budget Information For August, September,... | Snapessays.com


(Solution) 13-47. Budgeted Purchases and Cash Flows. Delhi, Inc., seeks your assistance in developing cash and other budget information for August, September,...


13-47. Budgeted Purchases and Cash Flows.

 

 

Delhi, Inc., seeks your assistance in developing cash and other budget information for August, September, and October. At July 31, the company had cash of $22,000, Accounts receivable of $1,748,000, inventories of $1,237,600, and accounts payable of $531,220. The budget is to be based of the following assumptions.

 

*Each month's sales are billed on the last day of the month.

 

*Customers are allowed a 3% discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts)

 

*the billings are collected as follows: 60% within the discount period, 25% by the end of the month, and 9% by the end of the following month. 6% is uncollectible.

 

 

Purchase data are as follows.

 

*Of all purchases of merchandise and selling, general, and administrative expenses, 54% is paid in the month purchased and the remainder in the following month.

 

*The number of units in each month's ending inventory equals 130% of the next month's units of sales.

 

*The cost of each unit of inventory is $20.

 

*Selling, general, and administrative expenses, of which $8000 is depreciation, equal 15% of current months sales.

 

 

Actual and projected sales follow:

 

 

Dollars Units

 

June $1,416,000 47200

 

July $1,452,000 48400

 

August $1,428,000 47600

 

September $1,368,000 45600

 

October $1,440,000 48000

 

November $1,464,000 48800

 

 

Required

 

Compute the following:

 

A. Budgeted purchases in dollars for August

 

B. Budgeted purchases in dollars for September

 

C. Budgeted cash collections during August

 

D. Budgeted cash disbursements during September

 

E. The budgeted number of units of inventory to be purchased in October.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: May 23, 2022

Solution~00021147602312.zip (25.37 KB)


This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

May 23, 2022

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • ■ As a reference for in-depth understanding of the subject.
  • ■ As a source of ideas / reasoning for your own research (if properly referenced)
  • ■ For editing and paraphrasing.

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

Get Free Price Quote