Question
A) Complete a cash collections schedule from the given information: July August September Total Budgeted Sales $300,000 $400,000 $500,000 $1,200,000 Beginning A/R balance for July
A) Complete a cash collections schedule from the given information:
|
| July | August | September | Total |
| Budgeted Sales | $300,000 | $400,000 | $500,000 | $1,200,000 |
Beginning A/R balance for July is $125,000. Collections pattern is 65% in the month of sale, 35% the month following sale.
|
| July | August | September | Total |
| Beginning A/R |
|
|
|
|
| July Sales |
|
|
|
|
| August Sales |
|
|
|
|
| September Sales |
|
|
|
|
| Total |
|
|
|
|
B) Complete a production budget from the given information:
|
| July | August | September | Total |
| Budgeted Sales in units | 60,000 | 40,000 | 70,000 | 170,000 |
The company desires an ending inventory balance of 20% of the following months budgeted sales. The beginning inventory balance at the start of July was 12,000 units. Budgeted sales for October is 50,000 units.
|
| July | August | September | Total |
| Budgeted Sales |
|
|
|
|
| +Desired ending inv. |
|
|
|
|
| = total needs |
|
|
|
|
| -Beginning inv. |
|
|
|
|
| =Total Production |
|
|
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Marketing
Authors: Roger Kerin, Steven Hartley, William Rudelius
16th Edition
1264218753, 978-1264218752
