Exercise 10-31 (Algo) Cash Receipts and Payments [LO 10-4] Information pertaining to Noskey Corporation's sales revenue follows: Cash sales Credit sales Total sales November 2021 (Actual) $ 125,000 294,000 $ 419,000 December 2021 (Budgeted) $ 127,000 423,000 $ 550,000 January 2022 (Budgeted) $ 78,000 216,000 $ 294,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2021 from November 2021 credit sales. 2. Budgeted total cash receipts in January 2022. 3. Budgeted total cash payments in December 2021 for inventory purchases. Required 1 Required 2 Required 3 Budgeted cash collections in December 2021 from November 2021 credit sales. Budgeted collections in December from November credit sales Required 1 Required 2 Required 3 Budgeted total cash receipts in January 2022. NOSKEY CORPORATION Budgeted Total Cash Receipts January 2022 Cash sales in January Collections from credit sales in January Total collectible from credit sales Percentage to be collected in January Collections from credit sales in December: Total collectible from credit sales Percentage to be collected in January Budgeted total cash receipts in January % % Required 1 Required 2 Required 3 Budgeted total cash payments in December 2021 for inventory purchases. NOSKEY CORPORATION Budgeted Total Cash Payments December 2021 Total inventory purchases in November: For November sales: For December sales: Percentage of November purchases to be paid in December Payment in December for purchases in November Budgeted purchases in December: For December sales: For January sales: Percentage of December purchases to be paid in December Payment in December for purchases in December Budgeted cash payment in December for inventory purchases %