Budgeted sales for January $200,000 and February $100,000.         Collections for sales are 60% in the month of sale and 40% the next month.        Gross margin is 30% of sales.          Administrative costs are $10,000 each month.            Beginning accounts receivable is $20,000.            Beginning inventory is $14,000.            Beginning accounts payable is $65,000. (All from inventory purchases.)            Purchases are paid in full the following month. information pertains to the January operating budget for an company.            Desired ending inventory is 20% of next month's cost of goods sold (COGS). A)For January, budgeted cash collections are ________. B) At the end of January, budgeted accounts receivable is ________.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Budgeted sales for January $200,000 and February $100,000.

        Collections for sales are 60% in the month of sale and 40% the next month.

       Gross margin is 30% of sales.

         Administrative costs are $10,000 each month.

           Beginning accounts receivable is $20,000.

           Beginning inventory is $14,000.

           Beginning accounts payable is $65,000. (All from inventory purchases.)

           Purchases are paid in full the following month.

information pertains to the January operating budget for an company.

           Desired ending inventory is 20% of next month's cost of goods sold (COGS).

  1. A)For January, budgeted cash collections are ________.
  2. B) At the end of January, budgeted accounts receivable is ________.
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