| | Exercise 22-17 Nieto Companys budgeted sales and direct materials purchases are as follows. | | | Budgeted Sales | | Budgeted D.M. Purchases | | January | | $251,000 | | $32,200 | | | February | | 238,100 | | 45,300 | | | March | | 299,600 | | 38,300 | | Nietos 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. Nietos 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. (a) Prepare a schedule of expected collections from customers for March. | NIETO COMPANY Expected Collections from Customers | | | | March | | select an item February cash salesCollection of January credit salesJanuary cash salesPayment of March credit purchasesMarch cash purchasesPayment of February credit purchasesMarch cash salesCollection of March credit salesCollection of February credit sales | | $enter a dollar amount | | select an item January cash salesCollection of January credit salesPayment of February credit purchasesFebruary cash salesMarch cash purchasesPayment of March credit purchasesCollection of March credit salesMarch cash salesCollection of February credit sales | | enter a dollar amount | | select an item Collection of February credit salesJanuary cash salesCollection of January credit salesCollection of March credit salesPayment of March credit purchasesMarch cash purchasesPayment of February credit purchasesFebruary cash salesMarch cash sales | | enter a dollar amount | | select an item January cash salesCollection of March credit salesCollection of January credit salesCollection of February credit salesMarch cash purchasesFebruary cash salesMarch cash salesPayment of February credit purchasesPayment of March credit purchases | | enter a dollar amount | | Total collections | | $enter a total amount | (b) Prepare a schedule of expected payments for direct materials for March. | NIETO COMPANY Expected Payments for Direct Materials | | | | March | | select an item Collection of February credit salesCollection of January credit salesPayment of February credit purchasesCollection of March credit salesMarch cash salesFebruary cash salesJanuary cash salesMarch cash purchasesPayment of March credit purchases | | $enter a dollar amount | | select an item January cash salesPayment of February credit purchasesPayment of March credit purchasesMarch cash purchasesCollection of February credit salesMarch cash salesCollection of March credit salesCollection of January credit salesFebruary cash sales | | enter a dollar amount | | select an item Collection of February credit salesFebruary cash salesPayment of March credit purchasesJanuary cash salesMarch cash purchasesPayment of February credit purchasesMarch cash salesCollection of March credit salesCollection of January credit sales | | enter a dollar amount | | Total payments | | $enter a total amount | | Click if you would like to Show Work for this question: | Open Show Work | | | | |
