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PROTECTED VIEW Be careful -files from the Internet can contain viruses. Unless you ned to edit, i's safer to stay in Protected Xfr1. Sales A1 8 1 1. Sales 2016 Actual Sales 2017 Estimated Sales Nov Dec Jan FebMarMay 7,835 7,970 7,450 7,090 4 Units 8,320 9,070 10,120 6 The selling price per unit has remained constant for the past year and is expected to 7 remain unchanged throughout the first quarter of 2017 at an amount of $68.99 9 2. Cash Collection Policy 10 Total sales consist of the following 11 Cash sales: 12 Credit sales: 13 14 Credit collections are as follows: 5% 95% 5 In the month following the month of sale: 16 in the second month following the month of sale: 17 The Company does not have any bad debts. 75% 25% 19 3. Production Policy 0 The Company's policy is to produce during each month, enough units to meet the current 21 month's sales as well as a desired inventory at the end of the month which should be 22 equal to 23% of next month's estimated sales. On December 31, 2016, the finished 3 goods inventory consisted of 1,714 units at a cost of $50.40. 24 4. Direct Materials Purchasing Policy 6 Each month the Company purchases enough direct materials to meet that month's production requirements and an amount equal to 25% of the next month's estimated 28 production requirements. Each unit of finished product requires 2.83 pounds of direct 29 materials at a cost of $1.38 per pound. On December 31, 2016, the direct materials 0inventory consisted of 5,213 lbs. at a cost of $1.38. Requirements Facts Sheet Balance Sheet Type here to search ViewSoni

Explanation / Answer

Schedule of collection from sales Nov Dec January February March Sale units 7835 7970              7,450              7,090              8,320 Sale revenue 5,40,536.65 5,49,850.30 5,13,975.50 4,89,139.10 5,73,996.80 Receipts from sales Cash sales      25,698.78      24,456.96      28,699.84 January sales on account 4,88,276.73 Collected in january                     -   Collected in february 3,66,207.54 Collected in march 1,22,069.18 February sales on account 4,64,682.15 Collected in february                     -   Collected in march 3,48,511.61 March sales on account 5,45,296.96 Collected in March                     -   November sales on account 5,13,509.82 Collected in december 3,85,132.36 Collected in january 1,28,377.45 December sales on account 5,22,357.79 collected in january 3,91,768.34 collected in february 1,30,589.45

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