Reference no: EM132598284

Information pertaining to Noskey Corporation's sales revenue follows:

                     November 2018 (Actual)              December 2018 (Budgeted)                January 2019 (Budgeted)

Cash sales            $ 170,000                                      $ 154,000                                  96,000

Credit sales            348,000                                          486,000                                     252,000

Total sales             $ 518,000                                           $ 640,000                                $ 348,000

Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.

Required:

Question a: Determine for Noskey:

1. Budgeted cash collections in December 2018 from November 2018 credit sales.

2. Budgeted total cash receipts in January 2019.

3. Budgeted total cash payments in December 2018 for inventory purchases