Question 3 of 4 View Policies Show Attempt History Current Attempt in Progress The accounting team at Splish Corp. plans to get a jump-start on its budget for the second quarter, since the first quarter is going well. Team members want to make sure to determine the cash effects of the company's sales as well as its biggest production-related cash expenditure, direct materials. The team has gathered the following information: The budgeted selling price for the year is $4.30 per unit. Sales volumes are budgeted as follows for the last month of quarter 1, for all of quarter 2, and for part of quarter 3. March April May June July August 26,000 22,000 23,300 27,600 23,900 23,100 2. Historically, 25% of Splish's sales are cash sales. Of the remaining credit sales, 40% are collected in the month of sale, while 56% are collected the following month. The remainder is deemed uncollectible. 3. Management sets its ending FG Inventory goal at 10% of the following month's sales volume. The accounting team expects this policy will be met at the beginning of the second quarter. 4. The target ending inventory for Splish's primary direct material is 20% of the following month's production needs, since it's not unusual for suppliers to stock out of this key resource. Each completed unit requires 4 pounds of DM at an expected cost of $0.40 per pound. 5. Splish pays for 35% of its purchases in the month of purchase and 65% the month after purchase. Total budgeted purchases in March are $16,400. For all quarterly budgets, report monthly amounts as well as the total for the quarter. (a Your answer is partially correct. Prepare the sales forecast and corresponding cash receipts budget for Splish Corp. for its second quarter. (Round budgeted selling price per unit to 2 decimal places, eg. 15.25.) Sales Budget April May June Quarter budgeted Sales Volume 22,000 23,300 27,600 Budgeted Selling Price 4.30 Budgeted Sales Revenue 94,600 100,190 118,680 'Round answers to 2 decimal places, eg. 15.25.) Cash Collections Budget April May June Quarter Beginning A/R (April) 46.956 0 i 46.956 April cash sales 23.650 23.650 April credit sales 28,380 23.839.50 52,219.20 May cash sales 25,047.50 25,047.50 May credit sales 30,057 25.247.88 55,304.88 June cash sales 29,670 29.670 June credit sales 35,604 35,604 Total cash receipts 98,986 78,484.50 90,521 88 $ e Textbook and Media Save for Later