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Liono4ka [1.6K]
3 years ago
9

Florida Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 60% of s

ales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20% of sales and are paid during the month of sale. Other operating costs amounting to 25% of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:
Month Sales
February $440,000
March $450,000
April $480,000
May $500,000
June $510,000
What is the amount of fabric purchases during the month of March?
a. $480,000.
b. $336,000.
c. $288,000.
d. $300,000.
Business
1 answer:
Masteriza [31]3 years ago
4 0

Answer:

Florida Curtain Works

1. Fabric purchases during the month of March:

c. $288,000.

Explanation:

a) Data and Calculations:

                Month Sales     Cost of Sales  Purchases     Wages  Others

February    $440,000       $264,000       $270,000    $88,000

March        $450,000          270,000         288,000      90,000   $110,000

April           $480,000          288,000         300,000      96,000     112,500

May           $500,000          300,000         306,000     100,000    120,000

June          $510,000         306,000                             102,000    125,000

b) Florida Curtain Works can prepare its budget for the next year by estimating the cost of goods to be sold, the purchases and payments for Fabric during the month based on trade terms, and the wages and other expenses to incur.  The budget helps its management to plan, prepare, exert efforts toward achieving the set targets, and analyze actual performance against budget.

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C. It can guarantee business success
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Telecommuters are not key to a business continuity plan (BCP) because they work from remote locations. Therefore, any disruption
Marrrta [24]

Answer:

This false

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Which of the following items would be subtracted from net income when reporting cash flows from operating activities, using the
BigorU [14]

Answer:

The correct answer is Increase in accounts payable and unearned fees.

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The amounts that are accounted for as accounts payable come from the purchase of goods or services in terms of credit. So, accounts payable are similar to credits with the difference that banks are not involved.

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Suppose a basket of goods and services has been selected to calculate the consumer price index (CPI) and 2002 has been selected
olchik [2.2K]

Answer:

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Explanation:

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Therefore The value of the CPI in 2004 was:108.3

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The correct answer would be answer choice <u>C. determining the qualities.</u>

When it comes to comparing things you will always use the qualities of the person, place, or thing.

Hope this helps.

~Lexa

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