Complete three classmates responses

CLASSMATE POST 1:

Green Lighting Supply plans inventory levels (at cost) at the end of each month as follows:

May, $271,000; June, $226,000; July, $209,000; and August, $241,000.

Sales are expected to be June, $449,000; July, $359,000; and August, $306,000. Cost of goods sold is 65% of sales.

Purchases in April were $258,000 and in May they were $188,000. Payments for each month’s purchases are made as follows: 15% during that month, 70% the next month, and the final 15% the next month.

Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.

CLASSMATE POST 2:

6-31 Sales Budget

A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8.  Forecast sales are as follows (all values are in thousands of yen).

January:  203,000
February:  227,000
March:  248,000

Sales are 40% cash and 60% credit.  55% of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month.  No uncollectable accounts are anticipated.  Accounts receivable at the beginning of 20X8 are 82,950 (10% of November credit sales of 140,000 and 4% of December credit sales of 151,000).

Prepare a schedule showing sales and cash collections for January, February, and March, 20X8.

Above are the two schedules.  For the sales budget schedule, I used simple calculations to break out cash (40%) and credit (60%) accordingly.  For the cash collections from customer’s schedule, I used formulas to determine the appropriate amounts.  For cash sales, I used the cash totals from the sales budget schedule and added 55% of the current month’s credit totals as well.  For collections from previous months, I used 35% of the previous month’s credit totals and added 10% of the previous-previous month’s credit totals.

CLASSMATE POST 3:

I used an excel spreadsheet to help me calculate the sales budget and cash collections schedules.  For the sales budget, I plugged in the total amount of sales in both lines and then went back to create an equation by multiplying the sales amount by either 40% for the cash line and 60% for the credit line.  

The cash collections schedule took more time and thought to make sure I was entering the right month’s information and percentage into each cell’s equation.  To figure the cash sales for the cash collections schedule, I just copied and pasted the 40% cash information from the sales budget and added 55% of the credit sales for the same month.  To figure the collections from prior months, I created an equation to add 35% of the previous months credit sales and 10% of two months prior’s  credit sales.