Packers sells its rock-climbing shoes worldwide. The following sales budget was produced. LOADING... (Click the icon to view the sales budget.) November sales totalled $392 000 and December sales were $407 000. The following schedule for the budgeted cash collections for January and February was prepared based upon the collection history given: LOADING... (Click the icon to view the collection history.) LOADING... (Click the icon to view the budgeted cash collections.) ... Question content area top right Part 1 Now assume that Packers' sales are collected as follows: 40% in the month of the sale (cash sales) 40% in the month after the sale 15% two months after the sale 5% never collected Requirement Prepare a revised schedule for the budgeted cash collections for January and February. Question content area bottom Part 1 Prepare a revised schedule for the budgeted cash collections for January and February. (Round to the nearest dollar.) Packers Budgeted cash collections from customers January - February January Cash sales, 40% Collection of credit sales: 40% of prior month credit sales 15% of credit sales two months ago Total cash collections February
Packers sells its rock-climbing shoes worldwide. The following sales budget was produced. LOADING... (Click the icon to view the sales budget.) November sales totalled $392 000 and December sales were $407 000. The following schedule for the budgeted cash collections for January and February was prepared based upon the collection history given: LOADING... (Click the icon to view the collection history.) LOADING... (Click the icon to view the budgeted cash collections.) ... Question content area top right Part 1 Now assume that Packers' sales are collected as follows: 40% in the month of the sale (cash sales) 40% in the month after the sale 15% two months after the sale 5% never collected Requirement Prepare a revised schedule for the budgeted cash collections for January and February. Question content area bottom Part 1 Prepare a revised schedule for the budgeted cash collections for January and February. (Round to the nearest dollar.) Packers Budgeted cash collections from customers January - February January Cash sales, 40% Collection of credit sales: 40% of prior month credit sales 15% of credit sales two months ago Total cash collections February
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Packers
sells its rock-climbing shoes worldwide. The following sales budget was produced.LOADING...
November sales totalled
$392 000
and December sales were
$407 000.
The following schedule for the budgeted cash collections for January and February was prepared based upon the collection history given:
LOADING...
LOADING...
...
Question content area top right
Part 1
Now assume that
Packers'
sales are collected as follows:|
40% in the month of the sale (cash sales)
|
|
40% in the month after the sale
|
|
15% two months after the sale
|
|
5% never collected
|
Requirement
Prepare a revised schedule for the budgeted cash collections for January and February.
Question content area bottom
Part 1
Prepare a revised schedule for the budgeted cash collections for January and February. (Round to the nearest dollar.)
|
Packers
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Budgeted cash collections from customers
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|
January - February
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January
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Cash sales, 40%
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|
|
Collection of credit sales:
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|
|
40% of prior month credit sales
|
|
|
15% of credit sales two months ago
|
|
|
Total cash collections
|
|
|
February
|
|
|
|
|
|
|
|
|
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