Question Details

[answered] Miken Company: The following data relate to the operations


Miken Company:


The following data relate to the operations of Miken Comapny, a distributor of consumer goods.


Accounts as of March 31:


???????? Cash??????????????????????????? ??? $8,000

???????? A/R????????????????????????????????? $20,000

???????? Inventory???????????????????????? $36,000

???????? Building & Equip (net)??????? $120,000

???????? A/P????????????????????????????????? $21,750

???????? Capital stock????????????????????$150,000

???????? Retained Earnings???????????? $12,250


A. The gross margin is 25% of sales

B. Actual and budgeted sales data:


??????????? March (actual)???????? $50,000

??????????? April?????????????????????? $60,000

??????????? May??????????????????????? $72,000

????????????June?????????????????????? $90,000

????????????July??????????????????????? $48,000


C. Sales are 60% cash and 40% credit. Credit sales are collected in the month following sale. The A/R at March 31 are a result of March credit sales.


D. Each month's ending inventory should equal 80% of the following month's budgeted COGS


E. One-half of a month's inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The A/P at March 31 are the result of March purchases of inventory


F. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,500 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $900 per month.


G. Equipment costing $1,500 will be purchased for cash in April


H. The company must maintain a minimum cash balance of $4,000. An open line of credit is available at a local bank. All borrowing is done at the beginning of a month, and all repayments are made at the end of the month; borrowing must be in multiples of $1,000. The annual interest rate is 12%. Interst is paid only at the time of repayment of principal. (figure interest in whole months 1/12, 3/12, etc.)


Using this information complete the following schedules:


1. Schedules of expected cash collections

2. Merchandise purchase budget

3. Schedule of cash disbursments (merchandise)

4. Schedule of cash disbursments (operating expenses)

5. Cash budget


 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 18, 2020

PRICE: $15

Solution~0001013883.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now