Young is a retailer of assorted baby products.The sales forecast for the coming months is:
Young's cost of sales averages 60% of revenues.The inventory policy is to carry 30% of next month's sales needs.April 1 inventory will be as expected under the policy.Young pays for purchases 80% in the month of purchase and 20% the following month.Accounts payable on April 1 is $22,400.
a.Prepare a purchases budget for as many months as is possible.
b.Prepare a cash payments budget for April through July.

Question

Young is a retailer of assorted baby products.The sales forecast for the coming months is:
  Young's cost of sales averages 60% of revenues.The inventory policy is to carry 30% of next month's sales needs.April 1 inventory will be as expected under the policy.Young pays for purchases 80% in the month of purchase and 20% the following month.Accounts payable on April 1 is $22,400.
a.Prepare a purchases budget for as many months as is possible.
b.Prepare a cash payments budget for April through July.

Quizplus · Accepted Answer

The Answer of Young is a retailer of assorted baby products.The sales forecast for the coming months is:
  Young's cost of sales averages 60% of revenues.The inventory policy is to carry 30% of next month's sales needs.April 1 inventory will be as expected under the policy.Young pays for purchases 80% in the month of purchase and 20% the following month.Accounts payable on April 1 is $22,400.
a.Prepare a purchases budget for as many months as is possible.
b.Prepare a cash payments budget for April through July.

Young Is a Retailer of Assorted Baby Products