Question;Hardy;Company?scost of goods sold is;consistently 60% of sales.;The company plans to carry;ending merchandise inventory for each month equal to 20% of the next month?s;budgeted cost of good sold. All merchandise is purchased on credit, and 50% of;the purchases made during a month is paid for in that month. Another 35% is;paid for during the first month after purchase, and the remaining 15% is paid;for during the second month after purchase. Expected sales are: August;(actual), $325,000, September (actual), $320,000, October (estimated);$250,000, November (estimated), $310,000.;Use;this information to determine October?s expected cash payments for purchases.;Calculate;monthly purchases & calculate payments made for inventory.
Paper#37344 | Written in 18-Jul-2015Price : $22