Posted: July 6th, 2016
Statues Inc. has the following sales budget for the second of the current year:
April May June Total Budgeted sales $250,000 $340,000 $590,000 $1,180,000 From past experience the company has learned that 10% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled 0,000 and March Sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.
A. April
B. May
C. June
Valentino Company had the following budgeted sales over the last 4 months of the year: Sales in Units October 10,000 November 25,000 December 35,000 January 46,000 The company is now in the process of preparing a production budget for the forth quarter. Past experience has shown that end of the month inventories of finished good must equal 20% of the next month’s sales. The inventory at the end of September is 2,000 units
For each of the following months calculate the number of units that need to be produced: show computations and related details
a. October
b. November
c. December
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