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Prepare separate schedules for expected payments for purchases of imantory.Ivanhoe Bakery has budgeted sales revenues...

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Accounting

Prepare separate schedules for expected payments for purchases of imantory.Ivanhoe Bakery has budgeted sales revenues as follows:
Past experience indicates that 40% of the credit sales will be collected in the month of sale, and the remaining 60% will be collected in
the following month.
Purchases of inventory are all on credit, and 20% will be paid in the month of purct se with the balance paid in the month following
purchase. Budgeted inventory purchases are:
Other budgeted amounts include: (a) selling and administrative expenses of $26,784 each month and (b) dividends of $8,856 to be
paid in May. Included in the selling and administrative expenses is depreciation expense of $2,052.
The company wishes to maintain a minimum cash balance of $4,320 at the end of each month. The company borrows money from the
bank at 4% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess
cash balance. The beginning cash balance on May 1 was $4,860. Money is borrowed in $108 increments.
Prepare separate schedules for expected payments for purchases of
April
May
Total collections.
image

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