Angel297
Apr 18, 2008, 07:26 AM
Quantrill Furniture Mart plans inventory levels (at cost) at the end of each month as follows: May,
$250,000; June, $220,000; July, $270,000; August, $240,000.
Sales are expected to be: June, $440,000; July, $350,000; August, $400,000. Cost of goods sold is 60% of sales.
Purchases in April were $250,000; in May, $180,000. A given month's purchases are paid as follows: 10% during that month; 80% the next month; and the final 10% the next month.
Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.
I have used the formulas in the book but come up with several errors :(
I do not know what I am doing wrong here. Please help!
Sheet 7 on the attachment are my figures.
$250,000; June, $220,000; July, $270,000; August, $240,000.
Sales are expected to be: June, $440,000; July, $350,000; August, $400,000. Cost of goods sold is 60% of sales.
Purchases in April were $250,000; in May, $180,000. A given month's purchases are paid as follows: 10% during that month; 80% the next month; and the final 10% the next month.
Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.
I have used the formulas in the book but come up with several errors :(
I do not know what I am doing wrong here. Please help!
Sheet 7 on the attachment are my figures.