Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Elementary Statistics

Authors: Robert R. Johnson, Patricia J. Kuby

11th Edition

9780538733502

Students also viewed these Accounting questions