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    Purchase Schedule and Budget

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    Quantrill furniture Mart plans inventory levels at cost at the end of each month as follows: May $250,000; June, $220,000; July $270,000; August $240,000

    Sales are expected to be june, 440,000; July,$350,000, August, $400,000. Cost of goods sold is 60% of sales

    Purchases in April were $250,000; in May, $180,000. A given month's purchases are paid as follows: 10% during that month; 80% the next month; and the final 10% the next month.

    Prepare budget schedules for June, July, and August for purchases and for disbursements for purchases.

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    Solution Summary

    The solution explains how to prepare a schedule of purchases and purchase disbursement in the attached Excel file.