Exercise 22-17 Your answer is partially correct. Try again. Nieto Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $274,000 244,200 261,800 Collection of January credit sales 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 of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers Collection of February credit sales Collection of March credit sales March cash sales Budgeted D.M. Purchases Total collections x $37,200 38,100 40,200 x March 69048 85470 78540 18326 251384
Exercise 22-17 Your answer is partially correct. Try again. Nieto Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $274,000 244,200 261,800 Collection of January credit sales 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 of expected collections from customers for March. NIETO COMPANY Expected Collections from Customers Collection of February credit sales Collection of March credit sales March cash sales Budgeted D.M. Purchases Total collections x $37,200 38,100 40,200 x March 69048 85470 78540 18326 251384
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:Exercise 22-17
Your answer is partially correct. Try again.
Nieto Company's budgeted sales and direct materials purchases are as follows.
January
February
March
Budgeted Sales
$274,000
244,200
261,800
Collection of January credit sales
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 of expected collections from customers for March.
NIETO COMPANY
Expected Collections from Customers
Collection of February credit sales
Collection of March credit sales
March cash sales
Budgeted D.M.
Purchases
Total collections
x
$37,200
38,100
40,200
x
March
69048
85470
78540
18326
251384
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