Master Budgeting From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. get? this ed Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec- ond quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. EXERCISE 8-2 Production Budget [LO8-3] Down Under Products, Ltd.., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units April .... May June . 50,000 75,000 90,000 80,000 July . The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.
Master Budgeting From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000. get? this ed Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec- ond quarter. 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date. EXERCISE 8-2 Production Budget [LO8-3] Down Under Products, Ltd.., of Australia has budgeted sales of its popular boomerang for the next four months as follows: Sales in Units April .... May June . 50,000 75,000 90,000 80,000 July . The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 10% of the following month's sales. The inventory at the end of March was 5,000 units. Required: Prepare a production budget for the second quarter; in your budget, show the number of units to be produced each month and for the quarter in total.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
8-2
![Master Budgeting
From past experience, the company has learned that 20% of a month's sales are collected in
the month of sale, another 70% are collected in the month following sale, and the remaining 10%
are collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260,000.
get?
this
ed
Required:
1.
Prepare a schedule of expected cash collections from sales, by month and in total, for the sec-
ond quarter.
2.
Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the
accounts receivable as of that date.
EXERCISE 8-2 Production Budget [LO8-3]
Down Under Products, Ltd.., of Australia has budgeted sales of its popular boomerang for the next
four months as follows:
Sales in Units
April ....
May
June .
50,000
75,000
90,000
80,000
July .
The company is now in the process of preparing a production budget for the second quarter. Past
experience has shown that end-of-month inventory levels must equal 10% of the following month's
sales. The inventory at the end of March was 5,000 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be
produced each month and for the quarter in total.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2F6c6bdabd-fa29-4b78-a557-c1f39a8a6cd5%2Fsdelebh.jpeg&w=3840&q=75)
Transcribed Image Text:Master Budgeting
From past experience, the company has learned that 20% of a month's sales are collected in
the month of sale, another 70% are collected in the month following sale, and the remaining 10%
are collected in the second month following sale. Bad debts are negligible and can be ignored.
February sales totaled $230,000, and March sales totaled $260,000.
get?
this
ed
Required:
1.
Prepare a schedule of expected cash collections from sales, by month and in total, for the sec-
ond quarter.
2.
Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the
accounts receivable as of that date.
EXERCISE 8-2 Production Budget [LO8-3]
Down Under Products, Ltd.., of Australia has budgeted sales of its popular boomerang for the next
four months as follows:
Sales in Units
April ....
May
June .
50,000
75,000
90,000
80,000
July .
The company is now in the process of preparing a production budget for the second quarter. Past
experience has shown that end-of-month inventory levels must equal 10% of the following month's
sales. The inventory at the end of March was 5,000 units.
Required:
Prepare a production budget for the second quarter; in your budget, show the number of units to be
produced each month and for the quarter in total.
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