Whispering Winds Company's budgeted sales and direct materials (DM) purchases are as follows Budgeted Sales Budgeted DM Purchases $300,000 $51,000 340,000 355,000 January February March Whispering Winds'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. Whispering Winds's purchases are 50% cash and 50% on account Purchases on account are paid 40% in the month of the purchase and 60% in the month following the purchase (a) Prepare a schedule of budgeted cash receipts from customers for March WHISPERING WINDSCOMPANY Budgeted Cash Receipts from Customers March Cash Sales Collection of March Credit Sales Collection of February Credit Sales 74,000 84,000 Collection of January Credit Sales Budgeted cash receipts March
Whispering Winds Company's budgeted sales and direct materials (DM) purchases are as follows Budgeted Sales Budgeted DM Purchases $300,000 $51,000 340,000 355,000 January February March Whispering Winds'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. Whispering Winds's purchases are 50% cash and 50% on account Purchases on account are paid 40% in the month of the purchase and 60% in the month following the purchase (a) Prepare a schedule of budgeted cash receipts from customers for March WHISPERING WINDSCOMPANY Budgeted Cash Receipts from Customers March Cash Sales Collection of March Credit Sales Collection of February Credit Sales 74,000 84,000 Collection of January Credit Sales Budgeted cash receipts March
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:Whispering Winds Company's budgeted sales and direct materials (DM) purchases are as follows
Budgeted DM Purchases
$51,000
74,000
84,000
January
February
March
Budgeted Sales
$300,000
340,000
355,000
Whispering Winds'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. Whispering Winds's purchases are 50% cash and
50% on account. Purchases on account are paid 40% in the month of the purchase and 60% in the month following the purchase.
(a)
Prepare a schedule of budgeted cash receipts from customers for March
WHISPERING WINDSCOMPANY
Budgeted Cash Receipts from Customers
March Cash Sales
Collection of March Credit Sales
Collection of February Credit Sales
Collection of January Credit Sales
Budgeted cash receipts
March
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