Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blue Spruce State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the information below for the months of

Blue Spruce State sells electronic products. The controller is responsible for preparing the master budget and has accumulated the
information below for the months of January, February, and March.
Balances at January 1 are expected to be as follows:
The budget is to be based on the following assumptions:
Each month's sales are billed on the last day of the month.
Customers are allowed a 3% discount if their payment is made within 10 days after the billing date. Receivables are booked at
gross.
The company collects 60% of the billings within the discount period, 25% by the end of the month after the date of sale, and
9% by the end of the second month after the date of sale; 6% prove uncollectible.
It pays 54% of all materials purchases and the selling, general, and administrative expenses in the month purchased and the
remainder in the following month. Each month's units of ending inventory are equal to 130% of the next month's units of
sales.
The cost of each unit of inventory is $20.
Selling, general, and administrative expenses, of which $2,300 is for depreciation, are equal to 15% of the current month's
sales.
Actual and projected sales are as follows:
(a)
Your answer is incorrect.
Calculate the budgeted cash disbursements during the month of February.
Total cash disbursements for February
eTextbook and Media
(b)
Calculate the budgeted cash collections during the month of January.
Total cash receipts
Find the answer for b
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Profitability Conducting Management Audits

Authors: Robert M. Torok, Patrick J. Cordon

1st Edition

0471172251, 978-0471172253

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago