Question 1:

The sales budget for the first quarter as follows:

Jan Feb Mar

Sales $ 100,000 150,000 50,000

Required:

Prepare the Cash Collections Budget from sales if the cash sales are equal 40% of the total sales and

the credit sales are equal to 60%, and all credit sales are collected in the next month following the month

of sale, and The credit sales for Dec, was equal $ 10,000, 10% uncollectible from the credit sales

Question 2:

S. Company produces the product X, the data related to sales as follows:

Dec Jan Feb Mar

Sales units 20000 30000 40000 50000

Unit selling price $ 10 20 20 20

Required:

1- Prepare the Sales Budget for the first quarter:

2-If the collections policy including

Monthly sales collected as following

a. 30% collected cash at the same month of sale

b. The credit sales collected equally in the two months following the month of sale

Prepare

The cash collections budget for the first quarter