Answer:
Instructions are listed below.
Explanation:
Giving the following information:
On June 1, the company has 11,000 parts in stock, although sales for June are estimated to total 11,000 parts. Total sales of parts are expected to be 12,000 in July and 15,000 in August.
Parts are purchased at a wholesale price of $20. The supplier has a financing arrangement by which Lakeside Components pays 60 percent of the purchase price in the month when the parts are delivered and 40 percent in the following month.
1) Purchase in units:
June:
Sales in June= 11,000
Ending inventory= 12,000
Beginning inventory= (11,000)
Total= 12,000
July:
Sales in June= 12,000
Ending inventory= 15,000
Beginning inventory= (12,000)
Total= 15,000
2) Cash budget:
June:
Purchase in June= (12,000*20)*0.6= 144,000
From May= (14,000*20)*0.4= 112,000
Total= 256,000
July:
Purchase in July= (15,000*20*0.6)= 180,000
From June= (12,000*20*0.4)= 96,000
Total= 276,000
