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blondinia [14]
2 years ago
14

Ahmed Company purchases all merchandise on credit. It recently budgeted the following month-end accounts payable balances and me

rchandise inventory balances. Cash payments on accounts payable during each month are expected to be: May, $1,200,000; June, $1,500,000; July, $1,400,000; and August, $1,400,000
Accounts
Payable Merchandise Inventory
May 31 $ 150,000 $ 260,000
June 30 130,000 500,000
July 31 300,000 300,000
August 31 120,000 330,000


(1) Compute the budgeted amounts of merchandise purchases.
Budgeted amounts: June July August
Ending accounts payable
Payments on account
Subtotal 0 0 0
Beginning accounts payable
Purchases $0 $0 $0
(2) Compute the budgeted amounts of cost of goods sold.
Budgeted amounts: June July August
Beginning inventory
Purchases
Cost of goods available for sale
Ending inventory (500,000) (300,000) (330,000)
Cost of goods sold $
Business
1 answer:
vazorg [7]2 years ago
7 0

Answer:

Budgeted amounts:                 June              July              August

1. Purchases                             $1,480,000   $1,570,000   $1,220,000

2. Cost of goods sold              $1,240,000   $1,770,000   $1,190,000

Explanation:

The computations are shown below:

1.

Budgeted amounts:                 June              July              August

Ending accounts payable         $130,000    $300,0000    $120,000

Payments on account              $1,500,000  $1,400,000     $1,400,000

Subtotal                                  $1,630,0000 $1,700,000      $1,520,000

Beginning accounts payable  ($150,000)     ($130,000)      $300,000)

Purchases                                $1,480,000   $1,570,000     $1,220,000      

2.

Budgeted amounts:                 June               July                   August

Beginning inventory                 $260,000      $500,000      $300,000

Purchases                                 $1,480,000   $1,570,000     $1,220,000      

Cost of goods available for sale  $1,740,000 $2,070,000  $1,520,000

Ending inventory                         (500,000)     (300,000)     (330,000)

Cost of goods sold                      $1,240,000   $1,770,000   $1,190,000

 

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Better customer satisfaction

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Explanation:

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Two investors have the following pattern of expected returns (Before-Tax Cash Flows): Investment A: Y1: $5,000; Y2: $10,000; Y3:
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Answer:

Investment A = 11.089%

Investment B = 12.772%

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The internal rate of return can be calculated using a financial calculator

For investment A,

Cash flow in year zero = -$110,000

Cash flow in year 1 = $5,000

cash flow in Y2 = $10,000

cash flow in Y3 = $12,000

Cash flow in Y4 = $15,000 + $120,000 = $135,000

Irr = 11.089%

For investment B,

Cash flow in year zero = -$120,000

Cash flow in year one = $2,000

cash flow inY2: $4,000

cash flow in Y3: $1,000

cash flow in Y4: $5,000 + $180,000 = $185,000

IRR = 12.772%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

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Bird Brain Co. reported net income of $45,000 for the year ended December 31, 2018. January 1 balances in accounts receivable an
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Answer:

$48,000

Explanation:

Computation for Brain's cash flows from operating activities

CASH FLOW FROM OPERATING ACTIVITIES

Net income$45,000

Add: Decrease in Account receivable $1,000

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Add: Increase in Account Payable $2,000

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