Budgeting Homework

1)Spotlight achieves its target manufacturing cost for the GPx and put it into volume production. The budgeted sales for the last 4 months of the calendar year are as follows:

To determine how much and when cash from these budgeted sales are to be collected, the accounting staff developed the following cash collections expectations:

10% of each month's sale are expected to be made by other retailers(B2B) from spotlight's specialty outlet stores. All the outlet stores customers buy on trade credit and pay for their purchases the month after their purchase.

90% of each month's sales are expected to be from online customers. Of 90% of sales made online:

-30% of each month's sales will be paid for in the month of using a debit card. Debit cards assess an online processing fee of 1.5% on each sale $ on collection.

-50% of each month's will be paid for in the month of sale using a Visa or Mastercard credit card. Visa and Mastercard assess on an online fee of 2.5% on each sales of $ on collection.

-The remaining 20% of each month's sales will be paid for in the month of sale using an AMEX credit card. Amex assess an online processing fee of 3.5% on each sale $ on collection.

What are the November cash collections from the following sale types?

Budgeting Homework

1)Spotlight achieves its target manufacturing cost for the GPx and put it into volume production. The budgeted sales for the last 4 months of the calendar year are as follows:

SALES BUDGET September October November December Budgeted Sales 18.000 15,000 15,000 (units) 12,000 Budgeted Price $ 50 $ 50 $ 50 $ 50 Budgeted $ 900,000 $ 750,000 $ 600,000 $ 750,000 RevenueSales made using Debit Cards Sales made using Visa or MasterCard Sales made using AMEX Trade Credit Sales Trade Credit Sales that are never expected to be be offected