Marthaler's Suits is looking for assistance with preparing a sales and cash receipts budget tor the upcoming year. Dan, the owner, provides you with the following intormation • The average suit sells for $575. 1.500 suits were sold in December. Expected sales 1.600 in January, 1.800 in February, and 1,700 in March. . Cash sales are expected to be 15% and the rest to be on credit. Of the credit sales, 40% are expected to be collected in the month of sale and the rest in the month following the sale. • Cash payments are expected to be paid all on credit, 55% are expected to be paid in the month of purchase and the rest in the month following the purchase. 1. Create a sales budget for Marthaler's Suits for Q1. Sales Budget January February March Quantity Price Total Sales 2. Create the cash receipts budget for Marthaler's Suits for Q1. Cash Receipts Budget March February January Cash Sales Credit Sales Cash Collection of Credit Sales of Current Month Sales of Prior Month Sales

Marthaler's Suits is looking for assistance with preparing a sales and cash receipts budget tor the upcoming year. Dan, the owner, provides you with the following intormation • The average suit sells for $575. 1.500 suits were sold in December. Expected sales 1.600 in January, 1.800 in February, and 1,700 in March. . Cash sales are expected to be 15% and the rest to be on credit. Of the credit sales, 40% are expected to be collected in the month of sale and the rest in the month following the sale. • Cash payments are expected to be paid all on credit, 55% are expected to be paid in the month of purchase and the rest in the month following the purchase. 1. Create a sales budget for Marthaler's Suits for Q1. Sales Budget January February March Quantity Price Total Sales 2. Create the cash receipts budget for Marthaler's Suits for Q1. Cash Receipts Budget March February January Cash Sales Credit Sales Cash Collection of Credit Sales of Current Month Sales of Prior Month Sales

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Pelican Merchandising & More is a family-owned store. The business is now approaching theend of the year and is in the process of identifying its cash needs for the first quarter of the newyear. You are the management accountant of the entity and have been tasked to prepare the cashbudget for the business for the quarter ending March 31, 2022. Extracts from the sales and purchases budgets are as follows: An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 4/30, n90:55% in the month of sale35% in the first month following the sale8% in the second month following the saleThe remaining 2% is expected to be uncollectible Accounts payable are settled as follows, in accordance with the credit terms 2/30, n60:85% in the month in which the inventory is purchased15% in the following month The management of Pelican Merchandising has negotiated with a tenant to sublet…
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