Normal cash collection experience has been that 50 of sales

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1. Beta company has developed the following sales projection for next year:

  • May $100,000
  • June 120,000
  • July 140,000
  • Aug 160,000
  • Sep 150,000
  • Oct 130,000

Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month folloing the sale. The remaining 5% of sales is never collected. Beta's budgeted cash collections for the third calendar quarter are?

2. A company has budgeted sales for the upcoming quarter as follows:

  • Jan: 15,000
  • Feb: 18,000
  • March: 16,500

The ending finished goods inventory for each month equals 50% of the next months budgeted sales. Additionally, 3 pounds of raw materials is required for each finished unit produced. The ending raw materials inventory for each month equals 200% of the next month's production requirements. If the raw materials cost $4.00 per pound and must be paid for in the month purchased, the budgeted raw materials purchases for January are?

Reference no: EM13590885

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