Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $218,500 $34,300 February 235,800 41,600 March 337,600 45,000 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. (Round answers to 0 decimal places, e.g. 2,500.) NIETO COMPANY Expected Collections from Customers March select collections $enter a dollar amount select collections enter a dollar amount select collections enter a dollar amount select collections enter a dollar amount Total collections $enter a total amount for this column (b) Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.) NIETO COMPANY Expected Payments for Direct Materials March select payments $enter a dollar amount select payments enter a dollar amount select payments enter a dollar amount Total payments $enter a total amount for this column
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.
Nieto Company’s budgeted sales and direct materials purchases are as follows.
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Budgeted Sales
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Budgeted D.M. Purchases
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||||
|---|---|---|---|---|---|
| January | $218,500 | $34,300 | |||
| February | 235,800 | 41,600 | |||
| March | 337,600 | 45,000 |
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. (Round answers to 0 decimal places, e.g. 2,500.)
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NIETO COMPANY
Expected Collections from Customers |
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|---|---|---|
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March
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| select collections |
$enter a dollar amount
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select collections
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enter a dollar amount
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|
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select collections
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enter a dollar amount
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|
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select collections
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enter a dollar amount | |
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Total collections
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$enter a total amount for this column
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(b)
Prepare a schedule of expected payments for direct materials for March. (Round answers to 0 decimal places, e.g. 2,500.)
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NIETO COMPANY
Expected Payments for Direct Materials |
||
|---|---|---|
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March
|
||
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select payments
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$enter a dollar amount
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|
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select payments
|
enter a dollar amount
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|
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select payments
|
enter a dollar amount | |
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Total payments
|
$enter a total amount for this column
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