Texts: need 1-4 answered! please help!
First Quarter
$62,000
April $51,000
190,000 75,400
Deductibles
$7,300 12,600 $44,700 $42,000
Schedule
purchases
85,000 50,000
April $18,300 22,350
May
Total $18,300 44,700
$22,350
Void the month following sale. The accounts receivable at March 31 are a result of March credit sales. The company's gross profit rate is 40% of sales. Monthly expenses are budgeted as follows: salaries and wages, $7,500 per month; shipping, 6% of advertising, $6,000 per month; production, $2,000 per month; other expenses, 4% of sales. At the end of each month, inventory is to be on hand equal to 30% of the following month's sales needs, stated at cost. Purchases are made in the current month and half in the following month. Equipment purchases during the quarter will be as follows: April, $11,500; and May, $3,000. Dividends totaling $3,500 will be declared and paid in June. The company must maintain a minimum cash balance of $8,000. An open line of credit is available for borrowing, and repayments are made at the end of a month. Borrowings and repayments of principal must be in multiples of $1,000. Interest is paid only at the time of repayment of principal. The annual interest rate is 12%. (Figure interest on whole months, e.g. April)
$40,650
Quarter 1) Sales Budget for the 2nd Quarter
April $14,000 56,000 70,000
Total Budgeted Sales
