Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Information pertaining to Noskey Corporation's sales revenue follows November 2021 December 2021 January 2022 (Actual) (Budgeted) Budgeted) Cash sales $ 90,000 $ 106,000 $ 64,000
Information pertaining to Noskey Corporation's sales revenue follows November 2021 December 2021 January 2022 (Actual) (Budgeted) Budgeted) Cash sales $ 90,000 $ 106,000 $ 64,000 Credit sales 252.000 374,000 188.000 Total sales $ 342,000 $ 480,000 $ 252,000 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 month's 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 2021 from November 2021 credit sales. 2. Budgeted total cash receipts in January 2022. 3. Budgeted total cash payments in December 2021 for Inventory purchases. Complete this question by entering your answers in the tabs below. Budgeted total cash payments in December 2021 for inventory purchases. 61,560 $ NOSKEY CORPORATION Budgeted Total Cash Payments December 2021 Total inventory purchases in November: For November sales For December sales Percentage of November purchases to be paid in December Payment in December for purchases in November Budgeted purchases in December: For December sales: For January sales: Percentage of December purchases to be paid in December Payment in December for purchases in December Budgeted cash payment in December for inventory purchases 61,560 75 % 46,170 $ 106,000 25% 26,500 72,670 $
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6697fea88fee0_1606697fea82fdc5.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6697fea94aaa6_1606697fea8de6eb.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started