Purpose a merchandise purchases budget

Assignment Help Financial Accounting
Reference no: EM1311076

Merchandise purchases budget.

At March 31 Sterling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the next four months:

April.................. 60,000

May...................75,000

June...................90,000

July.....................81,000

Sterling's board of directors has established a policy to commence in April that the inventory at the end of the month should contain 40% of the units required for the following month's budgeted sales.

Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.

Reference no: EM1311076

Questions Cloud

Violation of today''s ethical research practices : Summarize a research study which was conducted before the institution of National Research Act of the year 1974. Describe how the study would be in violation of today's ethical research practices.
Evaluate each project''s net present value : Calculating the project's net present value and evaluate each project's net present value
Finding optimal weekly output and price of firm : Find out the optimal weekly output and price of this firm. Find out the weekly profit from the production and sale of this product.
Computation of number of shares to be issued for purchase : Computation of the number of shares to be issued for purchase of the machinery and How many shares of stock must The Pasta Maker sell to finance its new machinery
Purpose a merchandise purchases budget : Purpose a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June.
Purpose a direct materials budget for the seasoning : Purpose a direct materials budget for the seasoning, by month an in total for the second quarter. Be sure to include both the quantity to be purchased and its cost for each month.
Profit maximizing or cost minimizing : Find the optimal (profit maximizing or cost minimizing) output of each firm. Find the price that each firm charges at the when producing the optimal output.
Make a segmented income statement : Prepare a segmented income statement in the contribution format for the company. Omit percentages; show dollar amounts.
Evaluate the division''s margin : Evaluate the division's margin, evaluate the division's turnover and  What is the division's return on investment (ROI)?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Evaluate the firm''s sales, net income, and net cash flow

Evaluate the firm's sales, net income, and net cash flow

  Examine effect of restatement of financial statement

Examine the economic effect of restatement of the financial statements on investors, employees, customers, and creditors.

  Evaluate net present value of this investment opportunity

Evaluate the net present value of this investment opportunity. Determine the internal rate of return of this investment opportunity.

  Evaluate the overhead assigned to each product using abc

Determine the overhead assigned to each product using the traditional cost system. Evaluate the overhead assigned to each product using ABC

  Financial accounting income statement

A corporate taxpayer has an income tax expenditure recorded on its preliminary financial statements if $13,000,000. How could the $1,000,000 be reflected in the financial accounting income statement?

  Evaluate the total tax liability

Assuming that Susan has a marginal tax rate of 30%, the net effect of her having this hobby will be to increase her total tax liability by:

  Evaluate the companys wacc

You are given the subsequent information for Lightning Power Co. Suppose the company's tax rate is 40 percent. evaluate the company's WACC

  Prepare the essential entries to clear the intangible assets

Prepare the essential entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as of December 31, 2015, recording any essential amortization.

  Incremental revenue and incremental income

Incremental revenue and incremental income (loss) associated with accepting the special order.

  Discuss several transfer pricing scenarios

What are the issues that Mr. Satoh must take in setting transfer pricing policies and intra-firm transfers within Tech Sonic? Discuss several transfer pricing scenarios that Tech Sonic may adopt and the likely impact of each on the Tech Sonic su..

  How would vickis assets be recorded for tax purposes

How would Vicki's assets be recorded for tax purposes by Palm Corporation? What is the amortization amount for each intangible asset in the current year?

  Purpose a flexible budget performance report

Purpose a flexible budget performance report that indicates any variances between budgeted results and actual results.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd