Prepare a sales budget for the year 2017 with a schedule of expected cash collections.
Prepare a sales budget for the year 2017 with a schedule of expected cash collections.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:PROBLEM 7-A SALES BUDGET
Sales volume for the year 2017 has been estimated for Queennie Apparels as follows:
Products
Pants
46,000
49,000
43,000
40,000
Shirts
Quarters
First
Second
Third
Dresses
32,000
35,000
31,000
29,000
83,000 127,000 178,000
18,000
21,000
24,000
20,000
Fourth
Total
Selling prices for these products are: Shirts - P65; Dresses - P100; Pants - P180. An
estimated 5% of sales is expected for sales returns and allowances. 80% of sales are on
account and 20% is cash sales. 75% of credit sales is collected in the same quarter of the sale
while 25% is collected in the following quarter.
Required:
Prepare a sales budget for the year 2017 with a schedule of expected cash collections.
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