Bonita Company's budgeted sales and direct materials purchases follow. January was the first month of operabom Budgeted sales January $140,800, February $189,100, March $252,100 Budgeted direct materials purchases January $39.800, February $35,400: March $39.600 Bonita's sales are 35% cash and 65% credit. It collects credit sales -40% in the month of sale, 60% in the month following the sale Bonita's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March Bonita Company Expected Collections Collections Cash sales Collections of credit sales January sales February sales March sales Total collections Payments Cash purchases Payment of credit purchases January purchases Prepare a schedule of expected payments for direct materials for January February and March Bonita Company Expected Payments February purchases March purchases January Total payments February January February March March

Bonita Company's budgeted sales and direct materials purchases follow. January was the first month of operabom Budgeted sales January $140,800, February $189,100, March $252,100 Budgeted direct materials purchases January $39.800, February $35,400: March $39.600 Bonita's sales are 35% cash and 65% credit. It collects credit sales -40% in the month of sale, 60% in the month following the sale Bonita's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March Bonita Company Expected Collections Collections Cash sales Collections of credit sales January sales February sales March sales Total collections Payments Cash purchases Payment of credit purchases January purchases Prepare a schedule of expected payments for direct materials for January February and March Bonita Company Expected Payments February purchases March purchases January Total payments February January February March March

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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