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    alex10284's Avatar
    alex10284 Posts: 1, Reputation: 1
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    #1

    Mar 18, 2009, 06:31 PM
    Purchases budget,income statement,and cash flows
    I need to prepare a budget for the months of JUly and August.
    a.purchases budget
    b. budgeted income statement
    c. budgeted cash flows

    Expected sales:
    June $300,000
    July $400,000
    August $450,000
    September $500,000

    The cost of merchandise purchased is to be 60% of sales. The company policy is to maintain ending inventory equal to 50% of the next month's CGS. All purchases are credit purchases. Purchases are paid in full in the month after the purchase.

    The beginning cash balance on July 1, 2009 is expected to be $20,000

    Monthly operating expenses:
    Sale salaries $20,000
    Advertising 4% of sales
    Delivery expense 2% of sales
    Rent expense $3,000
    Depreciation $ 700
    Utilities $500
    Insurance $300

    Please help me prepare the purchases budget, income statement, and cash flows
    mrwilliams25's Avatar
    mrwilliams25 Posts: 1, Reputation: 1
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    #2

    Mar 20, 2009, 07:40 PM
    Hey... did u ever get a answer to this question?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    Mar 21, 2009, 03:37 PM

    Use your finance textbook to this yourself, then if you have a specific question we will try to help you.
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