Company's budgeted sales and January February March Budgeted Sales $228,000 250,800 285,000 Total collections materials purchases are as follows. Budgeted D.M. Purchases $34,200 40,700 44,000 Sheridan'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. Sheridan'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. SHERIDAN COMPANY Expected Collections from Customers < $ March (b) Prepare a schedule of expected payments for direct materials for March. SHERIDAN COMPANY Expected Payments for Direct Materials March
Company's budgeted sales and January February March Budgeted Sales $228,000 250,800 285,000 Total collections materials purchases are as follows. Budgeted D.M. Purchases $34,200 40,700 44,000 Sheridan'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. Sheridan'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. SHERIDAN COMPANY Expected Collections from Customers < $ March (b) Prepare a schedule of expected payments for direct materials for March. SHERIDAN COMPANY Expected Payments for Direct Materials March
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Sheridan Company's budgeted sales and direct materials purchases are as follows.
Budgeted D.M.
Purchases
$34,200
40,700
44,000
January
February
March
Budgeted Sales
$228,000
250,800
285,000
Sheridan'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. Sheridan'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.
SHERIDAN COMPANY
Expected Collections from Customers
Total collections
>
>
Total payments
$
(b)
Prepare a schedule of expected payments for direct materials for March.
March
SHERIDAN COMPANY
Expected Payments for Direct Materials
$
March
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