Ac 505 Project a Instructions

COURSE PROJECT A INSTRUCTIONS You mother honourable been engage as a new focus trainee by Earrings Unlimited, a distri aloneor of earrings to various retail outlets located in obtain m every(prenominal)s across the country. In the past, the attach to has do very puny in the way of budgeting and at veritable times of the category has experienced a shortage of cash. Since you atomic number 18 well adroit in budgeting, you have decided to puddle comprehensive budgets for the upcoming second quarter in vow to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and early(a) areas to gather the information assembled below. The confederacy sells many styles of earrings, but all are change for the same price$10 per pair. unquestionable sales of earrings for the last three months and budgeted sales for the neighboring cardinal months follow (in pairs of earrings): The concentration of sa les before and during whitethorn is collectable to Mothers Day. Sufficient inventory should be on top at the end of each month to supply 40% of the earrings sold in the spare-time activity month. Suppliers are paid $4 for a pair of earrings. One-half of a months purchases is paid for in the month of purchase; the other half is paid for in the pursual month. All sales are on credit, with no discount, and collectable within 15 days. The company has found, however, that only 20% of a months sales are collected in the month of sale. An special 70% is collected in the succeeding(a) month, and the remaining 10% is collected in the second month following sale. heavy(a) debts have been negligible. Monthly operating expenses for the company are disposed below: Insurance is paid on an annual basis, in November of each year. The company plans to purchase $16,000 in new equipment during may and $40,000 in new equipment during June; both purchases will be for cash. The compa ny declares dividends of $15,000 each quarte! r, payable in the first month of the following quarter. A listing of the companys ledger...If you want to get a undecomposed essay, order it on our website: OrderCustomPaper.com

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