Nieto Company\'s budgeted sales and direct materials purchases are as follows. N

Question

Nieto Company's budgeted sales and direct materials purchases are as follows. Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Prepare a schedule of expected collections from customers for March. (Round answers to 0 decimal places, e.g. 2,500.) Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.)

Explanation / Answer

Ans) NETO COMPANY Month Budgeted Sales Budgeted Direct Material Purchases January $                            237,200.00 $                                                     36,500.00 Febuary $                            227,300.00 $                                                     43,100.00 March $                            284,800.00 $                                                     42,900.00 Cash Sales=30% Credit Sales=70% Collections from customers Month of sales=10% Following Month=50% Second Month=36% Uncollectable=4% Cash Purchases=50% Credit Purchases=50% Payment to Creditors Month of Purchases=40% Following Month=60% a NETO COMPANY Schedule of Expected Collections from Customers for March Month's Sales Collection from customer in march January Credit Sales $                                                           59,774 Febuary Credit Sales $                                                     79,555.00 March Cash Sales $                                                     85,440.00 March Credit Sales $                                                     19,936.00 Total Collection $                                                         244,705 b NETO COMPANY Schedule of Expected Payment for Direct Materials for March Month's Purchases Payment for Direct Mateial for March Febuary Credit Purchases $                                                     12,930.00 March Credit Purchases $                                                        8,580.00 March Cash Purchases $                                                     21,450.00 Total Payment $                                                     42,960.00

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.