Question
Information pertaining to Noskey Corporations sales revenue follows: November 2015 (Actual) December 2015 (Budgeted) January 2016 (Budgeted) Cash sales $ 175,000 $ 157,000 $ 98,000
Information pertaining to Noskey Corporations sales revenue follows:
November 2015 (Actual) | December 2015 (Budgeted) | January 2016 (Budgeted) | ||||
Cash sales | $ | 175,000 | $ | 157,000 | $ | 98,000 |
Credit sales | 354,000 | 493,000 | 256,000 | |||
Total sales | $ | 529,000 | $ | 650,000 | $ | 354,000 |
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 months 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 2015 from November 2015 credit sales. (Do not round intermediate calculations.) |
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