moonkhan209
Jul 20, 2011, 10:25 AM
Sand Dollar Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and merchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,400,000; June, $1,500,000; July, $1,300,000; and August, $1,500,000.
AccountPayable Merchandise Inventory
May 31 $ 150,000 $ 200,000
June 30 150,000 200,000
July 31 400,000 400,000
August 31 120,000 350,000
1. ComCompute the budgeted amounts of cost of goods sold for June, July, and August. Compute the budgeted amounts of merchandise purchases for June, July, and August.
Any idea about this question would be appreciated to solve this problem.
AccountPayable Merchandise Inventory
May 31 $ 150,000 $ 200,000
June 30 150,000 200,000
July 31 400,000 400,000
August 31 120,000 350,000
1. ComCompute the budgeted amounts of cost of goods sold for June, July, and August. Compute the budgeted amounts of merchandise purchases for June, July, and August.
Any idea about this question would be appreciated to solve this problem.