Question

Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The...

Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The company sets the unit selling price as 120% of the total of cost of goods sold per unit. 40% of the payment for merchandise purchases is made with cash in the month of purchase, and 60% is expected to be paid in the following month. The company maintains at the end of each month an inventory of 30% of the next month's cost of goods sold. Budgeted sales for the next three months are as follows:

January $9,600

February $12,000

March $16,500

The unit selling price and unit purchase cost do not change for the next three months.

What is the expected cash disbursement in February for merchandise purchases?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The...
Bearcat company, a merchandising company, started its business at the beginning of the year 2020. The company sets the unit selling price as 120% of the total of cost of goods sold per unit. 40% of the payment for merchandise purchases is made with cash in the month of purchase, and 60% is expected to be paid in the following month. The company maintains at the end of each month an inventory of 30% of the next month's cost of...
Assume a merchandising company’s estimated sales for January, February, and March are $110,000, $130,000, and $120,000,...
Assume a merchandising company’s estimated sales for January, February, and March are $110,000, $130,000, and $120,000, respectively. Its cost of goods sold is always 60% of its sales. The company always maintains ending merchandise inventory equal to 25% of next month’s cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What are the cash disbursements for merchandise purchases that would appear in the...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available Deacon Company Balance Sheet March 31 Assets Cash $ 55,000 Accounts receivable 36,000 Inventory 40,000 Buildings and equipment, net of depreciation 100,000 Total assets $ 231,000 Liabilities and Stockholders’ Equity Accounts payable $ 51,300 Common stock 70,000 Retained earnings 109,700 Total liabilities and stockholders’ equity $ 231,000 Budgeted Income Statements April May June Sales $ 100,000 $...
Assume a merchandising company’s estimated sales for January, February, and March are $100,000, $120,000, and $110,000,...
Assume a merchandising company’s estimated sales for January, February, and March are $100,000, $120,000, and $110,000, respectively. Its cost of goods sold is always 40% of its sales. The company always maintains ending merchandise inventory equal to 10% of next month’s cost of goods sold. It pays for 25% of its merchandise purchases in the month of the purchase and the remaining 75% in the subsequent month. What is the accounts payable balance at the end of February? Multiple Choice...
Assume a merchandising company’s estimated sales for January, February, and March are $119,000, $139,000, and $129,000,...
Assume a merchandising company’s estimated sales for January, February, and March are $119,000, $139,000, and $129,000, respectively. Its cost of goods sold is always 45% of its sales. The company always maintains ending merchandise inventory equal to 20% of next month’s cost of goods sold. It pays for 20% of its merchandise purchases in the month of the purchase and the remaining 80% in the subsequent month. What is the accounts payable balance at the end of February? Multiple Choice...
Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Wolfpack Company is a merchandising company that is preparing a budget for the month of July. It has provided the following information: Wolfpack Company Balance Sheet June 30 Assets Cash $ 79,200 Accounts receivable 68,600 Inventory 40,200 Buildings and equipment, net of depreciation 213,000 Total assets $ 401,000 Liabilities and Stockholders’ Equity Accounts payable $ 56,000 Common stock 100,000 Retained earnings 245,000 Total liabilities and stockholders’ equity $ 401,000 Budgeting Assumptions: All sales are on account. Thirty percent of the...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available Deacon Company Balance Sheet March 31 Assets Cash $ 60,000 Accounts receivable 30,000 Inventory 43,900 Buildings and equipment, net of depreciation 131,000 Total assets $ 264,900 Liabilities and Stockholders’ Equity Accounts payable $ 72,000 Common stock 70,000 Retained earnings 122,900 Total liabilities and stockholders’ equity $ 264,900 Budgeted Income Statements April May June Sales $ 113,000 $...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended...
Deacon Company is a merchandising company that is preparing a budget for the three-month period ended June 30th. The following information is available Assets Cash $ 60,200 Accounts receivable 30,800 Inventory 60,400 Buildings and equipment, net of depreciation 124,000 Total assets $ 275,400 Liabilities and Stockholders’ Equity Accounts payable $ 71,100 Common stock 70,000 Retained earnings 134,300 Total liabilities and stockholders’ equity $ 275,400 Budgeted Income Statements April May June Sales $ 168,000 $ 178,000 $ 198,000 Cost of goods...
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000,...
Company B is a merchandising Company. Estimated sales for July, August, and September will be $200,000, $190,000, and $210,000, respectively. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The average gross profit ration is 60%. The company pays for 40% of its merchandise purchase in the month of purchase and the remaining 60% in the month following the purchase. 1. How much is the budgeted merchandise purchase in August? 2. How much is the...
A merchandising firm by the name of Star Wars Enterprises, had an inventory of 42,000 units...
A merchandising firm by the name of Star Wars Enterprises, had an inventory of 42,000 units on March 31, and it had accounts receivable totaling $83,500. Sales, in units, have been budgeted as follows for the next four months: April 55,000 May 65,000 June 81,000 July 79,000 To be enforced in April, Star Wars board of directors has established a policy that states that the inventory at the end of each month should contain 35% of the units required for...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT