Do not give image format Jezaret, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and additional information follow:(Click the icon to view the budget.)(Click the icon to view additional information.)Prepare an inventory, purchases, and cost of goods sold budget for each of the first three quarters of the year. Compute cost of goods sold for the entire nine-month period.Jezaret, Inc.Inventory, Purchases, and Cost of Goods Sold BudgetNine Months Ended September 30, 2024Cost of goods soldPlus: Desired ending merchandise inventoryTotal merchandise inventory requiredLess: Beginning merchandise inventoryBudgeted PurchasesQuarter EndedMarch 31C... Cash sales, 30%Credit sales, 70%Total sales> Show Transcribed Text$$March 31Quarter EndedJune 30 September 3052,500 $37,500 $87,500125,000 $c122,500175,000 $45,000 $105,000150,000 $Nine-MonthTotal135,000315.000450,000In the past, cost of goods sold has been 40% of total sales. The director ofmarketing and the financial vice president agree that each quarter's endinginventory should not be below $35,000 plus 10% of cost of goods sold for thefollowing quarter. The marketing director expects sales of $225,000 during thefourth quarter. The January 1 inventory was $15,000.

Inventory purchase budget :— This budget is prepared to estimate the value of purchases made during…

Answered: Cash sales, 30% Credit sales, 70% Total…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget, and the Income Statement for 2021. The yearly budget is broken into quarters. The year-end is December 31st. Additional Details: The average estimated selling price per electric bike is $450. There are $2040 bicycles in Bike Inventory at the end of 2020 with a value of $380,000. At the end of each quarter, CBH Company wishes to have 85% of next quarters estimated sales units in Bike Inventory. At the end of 2021 assume 2000 bikes are required in the ending inventory. For each quarter, it is estimated that 75% of sales will be cash and 25% will be credit sales. Of the credit sales, 80% pay in a quarter of the sale and 20% pay in the following quarter. Credit sales from part4 were $430000 Assume operating expenses occur evenly throughout the year and are all paid in cash For each quarter, 70% of…
CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget, and the Income Statement for 2021. The yearly budget is broken into quarters. The year-end is December 31st. Additional Details: The average estimated selling price per electric bike is $450. There are $2040 bicycles in Bike Inventory at the end of 2020 with a value of $380,000. At the end of each quarter, CBH Company wishes to have 85% of next quarters estimated sales units in Bike Inventory. At the end of 2021 assume 2000 bikes are required in the ending inventory. For each quarter, it is estimated that 75% of sales will be cash and 25% will be credit sales. Of the credit sales, 80% pay in a quarter of the sale and 20% pay in the following quarter. Credit sales from part4 were $430000 Assume operating expenses occur evenly throughout the year and are all paid in cash For each quarter, 70% of…

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