Souper Duper sells pre-packaged soups. Souper Duper's actual and budgeted sales information for January, February, and March are as follows: Cash Sales Credit Sales Total Sales January (Actual) $80,000 $240,000 $320,000 February (Budgeted) $100,000 $360,000 $460,000 March (Budgeted) $60,000 $180,000 $240,000 10% of all sales made on credit are determined to be uncollectible. Of credit sales that are collectible, 50% are collected in the month of the sale and 50% is collected in the month following the sale. Inventory purchased, each month, are equal to 50% of the next month's projected total sales. All purchases of inventory are done on account with 25% paid in the month of purchase and the remainder paid in the month following the purchase. Required. What is Souper Duper's budgeted cash collections in February from January's credit sales? Do not use $ signs in your answer. Round your answer to the nearest dollar.
Souper Duper sells pre-packaged soups. Souper Duper's actual and budgeted sales information for January, February, and March are as follows: Cash Sales Credit Sales Total Sales January (Actual) $80,000 $240,000 $320,000 February (Budgeted) $100,000 $360,000 $460,000 March (Budgeted) $60,000 $180,000 $240,000 10% of all sales made on credit are determined to be uncollectible. Of credit sales that are collectible, 50% are collected in the month of the sale and 50% is collected in the month following the sale. Inventory purchased, each month, are equal to 50% of the next month's projected total sales. All purchases of inventory are done on account with 25% paid in the month of purchase and the remainder paid in the month following the purchase. Required. What is Souper Duper's budgeted cash collections in February from January's credit sales? Do not use $ signs in your answer. Round your answer to the nearest dollar.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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Transcribed Image Text:Souper Duper sells pre-packaged soups. Souper Duper's actual and budgeted
sales information for January, February, and March are as follows:
Cash Sales
Credit Sales
Total Sales
January (Actual)
$80,000
$240,000
$320,000
February
(Budgeted)
$100,000
$360,000
$460,000
March (Budgeted)
$60,000
$180,000
$240,000
10% of all sales made on credit are determined to be uncollectible. Of credit
sales that are collectible, 50% are collected in the month of the sale and 50% is
collected in the month following the sale.
Inventory purchased, each month, are equal to 50% of the next month's
projected total sales. All purchases of inventory are done on account with 25%
paid in the month of purchase and the remainder paid in the month following
the purchase.
==
Required. What is Souper Duper's budgeted cash collections in February from
January's credit sales? Do not use $ signs in your answer. Round your answer to
the nearest dollar.
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