Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of...
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Accounting
Required: 1. Prepare a merchandise purchases budget (in units) for each product for each of the months of March, April, and May. Keggler's Supply is a merchandiser of three different products. The company's February 28 inventories are footwear, 20,000 units; sports equipment, 80,500 units; and apparel, 49,000 units. Management believes that excessive inventories have accumulated for all three products. As a result, a new policy dictates that ending inventory in any month should equal 31% of the expected unit sales for the following month. Expected sales in units for March, April, May, and June follow. Use the following information: a. Beginning cash balance on March 1, $72,000. b. Cash receipts from sales, $300,000. c. Budgeted cash disbursements for purchases, $140,000. d. Budgeted cash disbursements for salaries, $80,000. e. Other budgeted cash expenses, $45,000. f. Cash repayment of bank loan, $20,000. Prepare a cash budget for the month ended on March 31 for Gado Merchandising Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31
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