Budgeted Sales $251,000 Budgeted D.M. Purchases January $32,200 February 238,100 45,300 March 299,600 38,300 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% inthe month of sale, S0% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers March Total collections 24
Budgeted Sales $251,000 Budgeted D.M. Purchases January $32,200 February 238,100 45,300 March 299,600 38,300 Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% inthe month of sale, S0% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. (a) Prepare a schedule of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers March Total collections 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Budgeted Sales
$251,000
Budgeted D.M. Purchases
January
$32,200
February
238,100
45,300
March
299,600
38,300
Nieto's sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and
36% in the second month following sale; 4% are uncollectible. Nieto's purchases are 50% cash and 50% on account. Purchases on
account are paid 40% in the month of purchase, and 60% in the month following purchase.
(a)
Prepare a schedule ofexpected collections from customers for March.
NIETO COMPANY
Expected Collections from Customers
March
Total collections
24
%24
Transcribed Image Text:Prepare a schedule of expected payments for direct materials for March.
NIETO COMPANY
Expected Payments for Direct Materials
March
Total payments
%24
%24
>
>
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