Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budget…
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Question “Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budget…”
Nieto Company’s budgeted sales and direct materials purchases
are as follows.
Budgeted Sales | Budgeted D.M. Purchases | ||||
January | $200,000 | $30,000 | |||
February | 220,000 | 36,000 | |||
March | 250,000 | 38,000 |
Nieto’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. Nieto’s purchases are 50% cash and 50% on account.
Purchases on account are paid 40% in the month of purchase, and 60%
in the month following purchase.
(a)
Prepare a schedule of expected collections from customers for
March. (Round answers to 0 decimal places, e.g.
2,500.)
(b)
Prepare a schedule of expected payments for direct materials for
March. (Round answers to 0 decimal places, e.g.
2,500.)
Answer
Conclusion
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