Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $257,000 $40,500 February 294,900 37,800 March 257,100 50,800 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. (b) Prepare a schedule of expected payments for direct materials for March.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nieto Company's budgeted sales and direct
materials purchases are as follows. Budgeted
Sales Budgeted D.M. Purchases January
$257,000 $40,500 February 294,900 37,800
March 257,100 50,800 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.
(b) Prepare a schedule of expected payments for
direct materials for March.
Transcribed Image Text:Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $257,000 $40,500 February 294,900 37,800 March 257,100 50,800 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. (b) Prepare a schedule of expected payments for direct materials for March.
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