The following is the sales budget for Tesoro Azul, Inc., for the first quarter o

Question

The following is the sales budget for Tesoro Azul, Inc., for the first quarter of 2016: January $139,000 February 156,000 March $171,000 Sales budget Credit sales are collected as follows: 60 percent in the month of the sale 30 percent in the month after the sale 10 percent in the second month after the sale The accounts receivable balance at the end of the previous quarter was $98,000 ($80,400 of which was uncollected December sales). a. Compute the sales for November. (Do not round intermediate calculations and round your answer to the nearest whole number e-9.,32) Sales S b. Compute the sales for December. (Do not round intermediate calculations and round your answer to the nearest whole number, 9, 32.) Sales $ .Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) January February March

Explanation / Answer

a November sales $               176,000 =(98000-80400)/10% b December sales $               201,000 =80400/(10%+30%) c Cash collection January $               161,300 =176000*10%+201000*30%+139000*60% February $               155,400 =201000*10%+139000*30%+156000*60% March $               163,300 =139000*10%+156000*30%+171000*60%

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