b. estimated sales are:

Oct.		$131,976
Nov.		195,704
Dec.		249,267
Jan		124,288
Feb.		124,295
Mar.		124,358

What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale? Round your answers to two decimal places.

		Ending Balance
January
February
March

c. Cold X, Inc. uses the following information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $2 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $39,000. What would be the budgeted amounts for 21,000 and 25,000 units?

		Budgeted Amounts
21,000 units
25,000 units

Before the year began, the following static budget was developed for the estimated sales of 100,000. Sales are sluggish and management needs to revise its budget. Use this information to prepare a flexible budget for 80,000 and 90,000 units of sales. Flexible Budget 100,000 80,000 90,000 Sales $3,460,000 Cost of Goods Sold Direct Material $800,000 Direct Labor 1,000,000 Variable Manufacturing Overhead 230,000 Fixed Manufacturing Overhead 70,000 Cost of Goods Sold $2,100,000 Gross Profit $1,360,000 Variable Sales and Administrative Expenses 200,000 Fixed Sales and Administrative Expenses 960,000 Income Before Taxes $200,000 $ Taxes 60,000 Net Income/Loss $140,000