Demy Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations...
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Accounting
Demy Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow:
Sales are budgeted at $310,000 for November, $330,000 for December, and $320,000 for January.
Collections are expected to be 60% in the month of sale, 39% in the month following the sale, and 1% uncollectible.
The cost of goods sold is 65% of sales.
The company would like to maintain ending merchandise inventories equal to 55% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
Other monthly expenses to be paid in cash are $22,800.
Monthly depreciation is $20,700. Ignore taxes.
The cost of December merchandise purchases would be: $210,925 $214,500 $114,400 $201,500
Please prepare a table that shows:
Cash collected during the month
Ending inventory to be maintained
Budgeted Income Statement
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