Traders, Inc. uses accrual accounting. Its balance sheet as of the end of the third quarter of the calendar year 2015 is shown on the following page: TRADERS, INC. Balance Sheet September 30, 2015...


Traders, Inc. uses accrual accounting. Its balance sheet as of the end of the third quarter of the calendar<br>year 2015 is shown on the following page:<br>TRADERS, INC.<br>Balance Sheet<br>September 30, 2015<br>Assets<br>Liabilities and Equity<br>P 416,000<br>Accounts payable<br>Capital stock<br>Retained earnings<br>P 1,400,000<br>7,200,000<br>3,536,000<br>Cash<br>Accounts receivable, net<br>Merchandise inventory<br>1,200,000<br>2,520,000<br>8,000,000<br>Non-current assets<br>Total liabilities and<br>P 12,136.000 Stockholders' equity<br>P 12,136,000<br>Total assets<br>Additional information:<br>• Budgeted sales for October is P 4,160,000; for November, P 4,000,000<br>• Gross profit rate is 20%<br>• Of the total sales, 40% is on credit which the company collects in the month following the month<br>of sale.<br>• Purchases in each month are composed of:<br>80% of the coming month's requirement<br>20% of the current month's requirement<br>Purchases are paid for in the month following the month of purchase<br>Questions:<br>The budgeted cash collections for the month of October is<br>Budgeted purchases during October is<br>The budgeted gross profit for the month of October is<br>

Extracted text: Traders, Inc. uses accrual accounting. Its balance sheet as of the end of the third quarter of the calendar year 2015 is shown on the following page: TRADERS, INC. Balance Sheet September 30, 2015 Assets Liabilities and Equity P 416,000 Accounts payable Capital stock Retained earnings P 1,400,000 7,200,000 3,536,000 Cash Accounts receivable, net Merchandise inventory 1,200,000 2,520,000 8,000,000 Non-current assets Total liabilities and P 12,136.000 Stockholders' equity P 12,136,000 Total assets Additional information: • Budgeted sales for October is P 4,160,000; for November, P 4,000,000 • Gross profit rate is 20% • Of the total sales, 40% is on credit which the company collects in the month following the month of sale. • Purchases in each month are composed of: 80% of the coming month's requirement 20% of the current month's requirement Purchases are paid for in the month following the month of purchase Questions: The budgeted cash collections for the month of October is Budgeted purchases during October is The budgeted gross profit for the month of October is

Jun 09, 2022
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