Smarty Partners projected sales and production in units for the coming year as follows: April May June Sales 55,00045,00063,000 Production65.00055.00055,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month. The accounts payable balance on March 31 totals $193,000, which will be paid in April. Typically 20% are cash sales and the rest are on credit. The sales price is $26 each. Cash collections from credit sales are budgeted at 60% in the month of sale, 35% in the month following the month of sale. The remaining 5% is never collected (bad debts expense). Accounts receivable on March 31 was $180,000. What is ending budgeted Accounts Receivable at the end of June?
Smarty Partners projected sales and production in units for the coming year as follows: April May June Sales 55,00045,00063,000 Production65.00055.00055,000 Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month. The accounts payable balance on March 31 totals $193,000, which will be paid in April. Typically 20% are cash sales and the rest are on credit. The sales price is $26 each. Cash collections from credit sales are budgeted at 60% in the month of sale, 35% in the month following the month of sale. The remaining 5% is never collected (bad debts expense). Accounts receivable on March 31 was $180,000. What is ending budgeted Accounts Receivable at the end of June?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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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:Smarty Partners projected sales and production in units for the coming year as
follows:
April May June
Sales 55,00045,00063,000
Production65.00055.00055,000
Cash-related production costs are budgeted at $7 per unit produced. Of these
production costs, 40% are paid in the month in which they are incurred and
the balance in the following month. Selling and administrative expenses will
amount to $110,000 per month. The accounts payable balance on March 31
totals $193,000, which will be paid in April.
Typically 20% are cash sales and the rest are on credit. The sales price is $26
each. Cash collections from credit sales are budgeted at 60% in the month of
sale, 35% in the month following the month of sale. The remaining 5% is never
collected (bad debts expense). Accounts receivable on March 31 was
$180,000.
What is ending budgeted Accounts Receivable at the end of June?
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