Prepare separate schedules for expected payments for purchases of imantory.Ivanhoe Bakery has budgeted sales revenues as follows:
Past experience indicates that of the credit sales will be collected in the month of sale, and the remaining will be collected in
the following month.
Purchases of inventory are all on credit, and will be paid in the month of purct se with the balance paid in the month following
purchase. Budgeted inventory purchases are:
Other budgeted amounts include: a selling and administrative expenses of $ each month and b dividends of $ to be
paid in May. Included in the selling and administrative expenses is depreciation expense of $
The company wishes to maintain a minimum cash balance of $ at the end of each month. The company borrows money from the
bank at interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess
cash balance. The beginning cash balance on May was $ Money is borrowed in $ increments.
Prepare separate schedules for expected payments for purchases of
April
May
Total collections.
