The Master Budget Sales and cash collections budgets Augustine Reeds, a manufact
ID: 2574510 • Letter: T
Question
The Master Budget Sales and cash collections budgets Augustine Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be: OctoberNovember December January $904,000964,000 $1,045,000 936,000 Augustine's sales are: 20% cash 80% credit The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% are never collected Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirements 1 Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2 Prepare a cash collections budget for December and January.Explanation / Answer
Answer =1 : Sales Budget October November December January Sales $ 9,04,000 $ 9,64,000 $ 10,45,000 $ 9,36,000 Cash Sales 20% $ 1,80,800 $ 1,92,800 $ 2,09,000 $ 1,87,200 Credit Sales 80% $ 7,23,200 $ 7,71,200 $ 8,36,000 $ 7,48,800 Answer =2) CASH COLLECTION BUDGET FOR THE MONTH OF DECEMBER AND JANUARY October November December January Credit Sales $ 7,23,200 $ 7,71,200 $ 8,36,000 $ 7,48,800 30% in the month of Sales $ 2,16,960 $ 2,31,360 $ 2,50,800 $ 2,24,640 60% in the month after the Sales $ 4,33,920 $ 4,62,720 $ 5,01,600 8% Two month after the sales $ 57,856 $ 61,696 2% never will be Collected $ - $ - $ - $ - Cash Collection against Credit sales $ 7,71,376 $ 7,87,936
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