Question
Concord Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $172,000 $25,800 February 189,200 30,960 March 215,000
Concord Company's budgeted sales and direct materials purchases are as follows. Budgeted Budgeted D.M. Purchases Sales January $172,000 $25,800 February 189,200 30,960 March 215,000 32,680 Concord's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Concord's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase.
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