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Prepare a cash budget for each quarter of 2018. PROBLEM 10-12. Budget Relationships [LO 2] The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2018. His work papers indicated the following: Budgeted Sales and Inventory Purchases for 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 $256,000 $300,000 $368,000 $320,000 $ $ $192,000 $ $ 69,500 $ $ $ $ Sales in 2017 Expected sales in 2018 Cost of sales Beginning inventory Ending inventory Purchases Assumptions: $290,000 $ $ SAS $ Total $1,214,000 $ $ SSSS $ Sales will increase by 25 percent over 2017. Cost of sales equals 75 percent of sales. For 2018, ending inventory should equal 35 percent of the cost of sales for the next quarter. Sales in the first quarter of 2019 will be $300,000.

Prepare a cash budget for each quarter of 2018. PROBLEM 10-12. Budget Relationships [LO 2] The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2018. His work papers indicated the following. Budgeted Sales and Inventory Purchases for 2018 Assumptions: Sales will increase by 25 percent over 2017. Cost of sales equals 75 percent of sales. For 2018, ending inventory should equal 35 percent of the cost of sales for the next quarter. Sales in the first quarter of 2019 will be $300,000. Prepare a cash budget for each quarter of 2018. PROBLEM 10-12. Budget Relationships [LO 2] The accountant at Supreme Audio resigned while he was in the midst of preparing the budget for 2018. His work papers indicated the following. Budgeted Sales and Inventory Purchases for 2018 Assumptions: Sales will increase by 25 percent over 2017. Cost of sales equals 75 percent of sales. For 2018, ending inventory should equal 35 percent of the cost of sales for the next quarter. Sales in the first quarter of 2019 will be $300,000

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