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Cash Accounts receivable $ 6 , 5 5 0 4 9 5 , 2 0 0 $ 3 6 8 , 2 0 0 1
Cash
Accounts receivable
$
$
Novak 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 are expected to be as follows:
Inventories
Accounts payable
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 discount if their payment is made within days after the billing date. Receivables are booked at
gross.
The company collects of the billings within the discount period, by the end of the month after the date of sale, and
by the end of the second month after the date of sale; prove uncollectible.
It pays 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 of the next month's units of
sales.
The cost of each unit of inventory is $
Selling, general, and administrative expenses, of which $ is for depreciation, are equal to of the current month's
sales
Actual and projected sales are as follows:
Month
November
December
January
February
March
April
Sales
$
Units
Calculate the budgeted number of units of inventory to be purchased during the month of March.
Units to be purchased
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