Dodge Ltd Is in the Process of Preparing Its Budget for for Next

question 9

Essay

Dodge Ltd. is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60 per cent of sales. Merchandise purchases are to be made during the month preceding the month of the sales. Dodge pays 60 per cent in the month of purchase, and 40 per cent in the month following. Wages are estimated at 20 per cent of sales and are paid during the month of sale. Other operating costs amounting to 10 per cent of sales are to be paid in the month following the sale. The accounts payable balance on June 30 was £20,000. $$\begin{array} { l r } \text { Month } & \text { Sales } \\\text { June } & £ 170,000 \\\text { July } & 200,000 \\\text { August } & 120,000 \\\text { September } & 150,000 \\\text { October } & 160,000 \\\text { November } & 100,000\end{array}$$

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Definitions:

Full Line Discount Stores

Retail outlets that offer a wide range of products at reduced prices, covering various categories from groceries to electronics.

Specialty Discount Stores

General merchandise outlets that offer a wide selection of merchandise within a single category.

Virtual Reality

An immersive digital environment that can simulate physical presence in places in the real world or imagined worlds.

Location Types

Refers to various categories or classifications of places based on certain characteristics, such as geographical, functional, or commercial attributes.