The information pertains to Nue Inc. sales revenue is presented below: February March April Cash sales 160,000 150,000 120,000 Credit sales 300,000 400,000 280,000 Total sales 460,000 550,000 400,000 anagement estimates the 10% are of credit sales are uncollectible. 65% of that credit sales are collected| the month of that sale and the remainder are collected in the following month of sale. Cost of purchases inventory each month is 60% of the next month's projected total sales. All purchases of inventory are on count, 35% are paid on the month of purchases and the remainder is paid in the month following the rchase. equired: a) Calculate the budgeted cash receipts in the month of March and April b) Calculate the budgeted cash disbursement in the month of March and April.
The information pertains to Nue Inc. sales revenue is presented below: February March April Cash sales 160,000 150,000 120,000 Credit sales 300,000 400,000 280,000 Total sales 460,000 550,000 400,000 anagement estimates the 10% are of credit sales are uncollectible. 65% of that credit sales are collected| the month of that sale and the remainder are collected in the following month of sale. Cost of purchases inventory each month is 60% of the next month's projected total sales. All purchases of inventory are on count, 35% are paid on the month of purchases and the remainder is paid in the month following the rchase. equired: a) Calculate the budgeted cash receipts in the month of March and April b) Calculate the budgeted cash disbursement in the month of March and April.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. The information pertains to Nue Inc. sales revenue is presented below:
February
March
April
Cash sales
160,000
150,000
120,000
Credit sales
300,000
400,000
280,000
Total sales
460,000
550,000
400,000
Management estimates the 10% are of credit sales are uncollectible. 65% of that credit sales are collected
on the month of that sale and the remainder are collected in the following month of sale. Cost of purchases
of inventory each month is 60% of the next month's projected total sales. All purchases of inventory are on
account, 35% are paid on the month of purchases and the remainder is paid in the month following the
purchase.
Required:
a) Calculate the budgeted cash receipts in the month of March and April
b) Calculate the budgeted cash disbursement in the month of March and April.
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