Information pertaining to Noskey Corporation’s sales revenue follows: November 20X1 (Actual) December 20X1 (Budgeted) January 20X2 (Budgeted)Cash sales $ 115,000 $ 121,000 $ 74,000Credit sales 282,000 409,000 208,000Total sales $ 397,000 $ 530,000 $ 282,000Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Complete the following: 1. Budgeted cash collections in December 20X1 from November 20X1 credit sales. 2. Budgeted total cash receipts in January 20X2. 3. Budgeted total cash payments in December 20X1 for inventory purchases.
Information pertaining to Noskey Corporation’s sales revenue follows:
November 20X1 (Actual) December 20X1 (Budgeted) January 20X2 (Budgeted)
Cash sales $ 115,000 $ 121,000 $ 74,000
Credit sales 282,000 409,000 208,000
Total sales $ 397,000 $ 530,000 $ 282,000
Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.
Complete the following:
1. Budgeted cash collections in December 20X1 from November 20X1 credit sales.
2. Budgeted total cash receipts in January 20X2.
3. Budgeted total cash payments in December 20X1 for inventory purchases.
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