1. Sales Budget February January 4,000 Quarter 20,000 Budgeted unit sales Selling price per unit Total budgeted sales 6,000 10,000 $120,000$180,000 $300,000 $600,000 Correct Correct Correct Correct 2. Schedule of Expected Cash Collections Februar January 3,600 March Quarter Accounts receivable, beginning balance 3,600 84,000 36,000 120,000 January sales 54,000 210,000 February sales 180,000 210,000 $87,600$ 162,000$264,000$513,600 126,000 March sales Total cash collections orrec orrec orrec orrec 3. Schedule of Cost of Goods Sold February January $120,000 $ 180,000$300,000$ 600,000 March Quarter Total budgeted sales Cost of Goods Sold % 55% 0 0 $66,000$ 99,000$165,000$330,000 Total budgeted cost of goods sold Correct! Correct Correct Correct 4. Merchandise Purchases Budget January $66,000$ 99,000$165,000$330,000 39,600 February March Quarter Budgeted cost of goods sold (from row 31) Add desired ending inventory 66,000 231,000 66,000 171,600 501,600 48,000 Total needs 105,600 48,000 165,000 Less beginning inventory Total budgeted purchases 6,000 10,000 $57,600 $159,000$221,000$ 453,600 5. Schedule of Expected Cash Disbursements Februa for Purchases January $30,000 Quarter $30,000 Accounts payable, beginning balance January purchase:s February purchases March purchases 30,000 S $30,000 Total cash disbursements Try again! Try again! a) Budgeted unit sales January February 4,000 6,000 March 10,000 April b) Selling price, per unit c) All sales are on account, there are no uncollectible accounts 10,000 $30 70% Percent of sales collected in the month of sale 30% $3,600 Percent of sales collected in the month following the sale Beginning Accounts Receivable balance (from Dec. sales), all of which will be collected in January d) Each month's ending inventory must equal The cost of goods sold Beginning inventory e) All merchandise purchases are on account Percent of merchandise purchases paid for in month of purchase Percent of purchases paid for in the month following the purchase Accounts Payable balance at Dec. 31, which will be paid in Jan 40% of next month's budgeted sales 55% of sales $48,000 50% 5% $30,000