kinsman a retailer provides the following data for 19a and 19b 337030

Kinsman, a retailer, provides the following data for 19A and 19B:

Budgeted sales for 19B are $1,200,000; sales for 19A were $1,100,000. Cash sales average 20 percent of total sales each year. Cost of goods sold for 19B is estimated to be $840,000. Budgeted 19B variable operating expenses are $120,000. They vary in proportion to sales and are paid 50 percent in the year incurred and 50 percent the following year. Unpaid variable expenses are not included in accounts payable above. Fixed operating expenses, including $35,000 depreciation and $5,000 uncollectible accounts expense, total $100,000 per year. Such expenses involving cash payments are paid 80 percent in the year incurred and 20 percent the following year. Unpaid fixed expenses are not included in

accounts payable above. Prepare a cash budget for 19B with supporting computations on cash collections from credit sales and cash disbursements for purchases of merchandise and operating expenses.