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question 6 Timpco, a retailer, makes both cash and credit...

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Accounting

question 6
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Timpco, a retailer, makes both cash and credit sales (i.e, sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: Past expenience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectble, 60% are collected in the month of sale, the remaining 405 are collected in the month following the month of sale. Customers nre granted a 15 s discount for payment within 10 days of billing. Approximately 75x of collect ble credit sales take advantage of the cash discount. Inventory purchases each month are 1003 of the cost of the following month's projected sales. (The gross profit rate for Timpco is approximately 30% ) All merchandise putchases are made on credt, with 25% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early poyment are avoilabie. Required: 1. Calculate the budgeted total cash receipts for November and December. (Round your final answers to the nearest whole dollar amount.) 2. Calculate budgeted cash disbursements for November and December poudgeted total soles for January of the coming year equals $2000000

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