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    Audrey Rebu's Avatar
    Audrey Rebu Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Aug 23, 2012, 06:56 PM
    Cash budget
    Cost of Sales

    Purchasing costs average 60% of sales. Purchases are enough to cover the next month's sales and all purchase are paid in the month of purchase.

    Sales:
    September 380,000
    October 520,000
    November 450,000
    December 550,000
    January 650,000

    How do I calculate the purchases? I am trying to do a cash budget for the three months of oct - Dec.

    Thanks
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
    Ultra Member
    		  
    #2

    Aug 23, 2012, 07:53 PM
    Carefully read the data then multipy the sales numbers by the percentage cost you are given
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