CUCK HERE TO SAVE YOUR WORK A 1 Kerlin Inc, is in the final stages of preparing its master budget for 2021. 1 2 3 Required: 4 1. The following data has been provided regarding sales and the expected collection pattern: 6 9 7 Budgeted sales: 8 March April May June Budgeted sales in units 18,000 19.000 21,500 22,500 10 Sales in dollars $144,000 $152.000 $172.000 $180,000 11 12 Cash sales 30% 13 Credit sales (sales on account) 70% 14 15 The collection pattern for the credit sales has traditionally been as follows: 16 17 Month of sale 80% 18 First month following sale 12% 19 Second month following sale 8% 20 21 Calculate the total expected cash collections for the month of May. (5 marks) 22 29 Kerwin Inc. 24 Schedule of Expected Cash Collections KI Budgeting - 2 New O 1-Deter CLICK HERE TO SAVE YOUR WORK A 11 15 The collection pattern for the credit sales has traditionally been as follows: Month of sale First month following sale Second month following sale 80% 12% 8% Calculate the total expected cash collections for the month of May. (5 marks) 18 19 20 21 22 23 24 25 26 27 28 Kerwin Inc. Schedule of Expected Cash Collections For the Month ending May 31, 2021 29 30 31 32 33 Total expected cash collections for May 34 2. 35 What would be the budgeted value of the accounts receivable on the May 31st balance sheet (statement of financial position)? (2 marks) 36 C Budgeting - 2 New CLICK HERE TO SAVE YOUR WORK 2 What would be the budgeted value of the accounts receivable on the May 31st balance sheet statement of financial position? (2 marks) Accounts receivable, May 31st 3/ 38 39 40 41 3 42 43 44 The following additional information has been provided: a) a) Inventory purchases are budgeted as follows: June Inventory purchases March April May $1092 $11,000 $130,20 $1,400 Inventory purchases are paid for in the following month. 46 47 49 50 51 52 53 b) Monthly expenses are budgeted as follows: Salaries (all paid in the current month) Utilities (all paid in the current month) Depreciation Sales commissions (paid in the current month) Advertising $20,800 per month $21,000 per month $28,000 per month 6% of sales 54 $11,500