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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
$6,550
495,200
$368,200
158,300
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 1 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 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 $2,400 is for depreciation, are equal to 15% of the current month's
sales
Actual and projected sales are as follows:
1
2.
3
4.
5.
6
7.
Month
November
December
January
February
March
April
Sales
$420,000
432,000
426,000
408,000
429,000
435,000
Units
14,000
14,400
14,200
13,600
14,300
14,500
Calculate the budgeted number of units of inventory to be purchased during the month of March.
Units to be purchased

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