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I just need help and an explanation on how to solve for March Sales. Step by step so i know how to get the answer.
I just need help and an explanation on how to solve for March Sales. Step by step so i know how to get the answer. Tilson Corporation has projected sales and production in units for the second quarter of the coming year as follows: Sales Production April 50,000 60,000 May 40,000 50,000 June 60,000 50,000 Cash-related production costs are budgeted at $8 per unit produced. Of these production costs, 35% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $80,000 per month. The accounts payable balance on March 31 totals $179,000, which will be paid in April All units are sold on account for $14 each. Cash collections from sales are budgeted at 75% in the month of sale, 15% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $488,000 ($98,000 from February's sales and $390,000 from March's sales). Required: a. Prepare a schedule for each month showing budgeted cash disbursements for Tilson Corporation b. Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation Complete this question by entering your answers in the tabs below. Required A Required B Prepare a schedule for each month showing budgeted cash receipts for Tilson Corporation April 700.000 May 560,000 June $40,000 Total sales $ $ $ Cash receipts February $ $ $ March sales 98,000 292,500 525,000 0 April sales $ May sales 97,500 105,000 420,000 0 622,500 o 70,000 84.000 630,000 784,000 0 June sales Total receipts S 915,500S $
I just need help and an explanation on how to solve for March Sales. Step by step so i know how to get the answer.
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