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  3. at march 31, bradley enterprises, a merchandising

At March 31, Bradley Enterprises, a merchandising firm, had an mventory of 38,000 unit, and...

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Accounting

At March 31, Bradley Enterprises, a merchandising firm, had an mventory of 38,000 unit, and it
had accounts receivable totaling $85,000. Sales, in units, have been budgeted as follows for the
next four months:
Sterling's board of directors has established a policy to begin in April that the inventory at the
end of each month should contain 40% of the units required for the following month's budgeted
sales. The selling price is $2 per unit. One-third of sales are paid for by customers in the month
of the sale and the balance is collected in the following month
Required:
(a) Prepare a sales budget showing how many units and sales dollars are expected to be
sold for each of the months April, Nay, and June.
(b) Prepare a schedule of expected cash collections for each of the months April, May, and June.
(c) Prepare a merchandise purchases budget showng how many units should be purchased for
each of the months Apni, May; and June.
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