[Angel297]

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.

[Angel297]

For some reason the attachment didn't get through so here are my figures.


Budget data
Sales forecast Other info.

March (actual) Beg. Inv.
April Desired End. Inv. 250,000
May 250,000 Plus % of next purchase 180,000
June 220,000 month's cost 10%
July 270,000 goods cost 80%
August 240,000 Cost of goods sold 10%
as % of sales 60%
Schedule c
Purchases budget April May June July
Desired ending inventory 370000 355600 379600 365200
Plus cost of goods sold 0 150000 132000 162000
Total needed 511600 527200 #REF! #REF!
Less beginning inventory 0 379600 365200 #REF!
Purchases #REF! #REF! #REF! #REF!