1) Dolce Co. estimates its sales at 180,000 units in the first quarter and that sales will increase by 18,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Production in units for the third quarter should be budgeted at
2) The responsibility for expressing management's budgeting goals in financial terms is performed by the
| lower level of management. |
3 Correy Inc. reported the following information for 2013:
| | October | | November | | December |
| Budgeted sales | | $460,000 | | $440,000 | | $540,000 |
| Budgeted purchases | | $240,000 | | $256,000 | | $288,000 |
- All sales are on credit.
- Customer amounts on account are collected 50% in the month of sale and 50% in the following month.
- Cost of goods sold is 35% of sales.
- Correy purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month.
- Accounts payable is used only for inventory acquisitions.
How much cash will Correy receive during November?
