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#3. Budgeting Problem (Ch 14 Below is the 1st Quarter Sales Budget for Burton Co. Januar Februa March Cash Sales Credit Sales Total Budgeted Sales
#3. Budgeting Problem (Ch 14 Below is the 1st Quarter Sales Budget for Burton Co. Januar Februa March Cash Sales Credit Sales Total Budgeted Sales $400,000 100,000 500,000 $480,000 120,000 600,000 $420,000 80.000 500,000 a) Prepare a 1st Quarter (January through March) schedule of cash receipts where 50% of Credit Sales (Accounts Receivable) are collected in the month after the sale and the remaining 50% is collected 2 months after the sale. (Assume there are no outstanding Accounts Receivable from the previous year.) Schedule of Cash Receipts Januar Februa March Current Cash Sales +Collections of A/R Total Budgeted Collections Prepare a 1st Quarter (January through March) Inventory Purchases Budget for Burton where: b) Monthly Cost of Goods Sold is 50% of that month's Total Budgeted Sales. Desired Ending Inventory in a month is 10% of the Cost of Goods sold for that SAME month. Beginning Inventory on January 1st is S35,000 , . Inventory Purchases Budget Januar Februar March Budgeted Cost of Goods Sold + Desired Ending Inventor Inventorv Needed - Beginning Inventor Required Purchases
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