Question
Information pertaining to Noskey Corporations sales revenue follows: November 2015 (Actual) December 2015 (Budgeted) January 2016 (Budgeted) Cash sales $ 155,000 $ 145,000 $ 90,000
Information pertaining to Noskey Corporations sales revenue follows: |
November 2015 (Actual) | December 2015 (Budgeted) | January 2016 (Budgeted) | |||||
Cash sales | $ | 155,000 | $ | 145,000 | $ | 90,000 | |
Credit sales | 330,000 | 465,000 | 240,000 | ||||
Total sales | $ | 485,000 | $ | 610,000 | $ | 330,000 | |
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.) |
2. | Budgeted total cash receipts in January 2016. (Do not round intermediate calculations.) |
3. | Budgeted total cash payments in December 2015 for inventory purchases. (Do not round intermediate calculations.) |
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