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Carmen Is a Retailer of Scrapbooking Products

question 61

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Carmen is a retailer of scrapbooking products.The sales forecast for the coming months is:
Carmen is a retailer of scrapbooking products.The sales forecast for the coming months is:    Carmen's sales are 70% cash and 30% store credit.The credit sales are collected 60% in the month of sale,the remainder the following month.Accounts receivable on April 1 are $32,000. Carmen's cost of sales averages 65% of revenues.The inventory policy is to carry 40% of next month's sales needs.April 1 inventory will be as expected under the policy.Carmen pays for purchases 30% in the month of purchase and 70% the following month.Accounts payable on April 1 is $125,000. a.Prepare a purchases budget for as many months as is possible. b.Prepare a cash payments budget for April through July. c.Prepare a cash receipts budget for April through July. Carmen's sales are 70% cash and 30% store credit.The credit sales are collected 60% in the month of sale,the remainder the following month.Accounts receivable on April 1 are $32,000.
Carmen's cost of sales averages 65% of revenues.The inventory policy is to carry 40% of next month's sales needs.April 1 inventory will be as expected under the policy.Carmen pays for purchases 30% in the month of purchase and 70% the following month.Accounts payable on April 1 is $125,000.
a.Prepare a purchases budget for as many months as is possible.
b.Prepare a cash payments budget for April through July.
c.Prepare a cash receipts budget for April through July.


Definitions:

Skin

The largest organ of the body that acts as a barrier protecting against physical, thermal, and chemical injury, and pathogens.

Olfactory Nerves

The first pair of cranial nerves, responsible for the sense of smell.

Trochlear Nerves

The fourth pair of cranial nerves, responsible for eye movement, particularly the superior oblique muscle's function which controls downward and inward eye movement.

Vagus

is a cranial nerve that controls functions in the heart, lungs, and digestive tract, playing a crucial role in the autonomic nervous system.

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