Band Instruments Company has the following sales budget
Question # 00100328
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Updated on: 09/03/2015 02:18 AM Due on: 10/03/2015
ACC 610 Week 7
1. Band Instruments Company has the following sales budget for the first three months of the current
year:
Month
January
February
March
Sales Revenue
$600,000
150,000
440,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of
the sale. November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February,
and March.
2. Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows:
Months
January
February
March
April
May
June
Unit Sales
700,000
820,000
760,000
720,000
1,280,000
1,500,000
The beginning inventory for 2014 is 210,000 units. The budgeted inventory at the end of a month is
30 percent of units to be sold the following month. Purchase price per unit is $7 per unit.
Required: Prepare a purchases budget in units and dollars for each month, January through
ACC 610 Week 7
1. Band Instruments Company has the following sales budget for the first three months of the current
year:
Month
January
February
March
Sales Revenue
$600,000
150,000
440,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of
the sale. November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February,
and March.
2. Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows:
Months
January
February
March
April
May
June
Unit Sales
700,000
820,000
760,000
720,000
1,280,000
1,500,000
The beginning inventory for 2014 is 210,000 units. The budgeted inventory at the end of a month is
30 percent of units to be sold the following month. Purchase price per unit is $7 per unit.
Required: Prepare a purchases budget in units and dollars for each month, January through
May.
May.
1. Band Instruments Company has the following sales budget for the first three months of the current
year:
Month
January
February
March
Sales Revenue
$600,000
150,000
440,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of
the sale. November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February,
and March.
2. Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows:
Months
January
February
March
April
May
June
Unit Sales
700,000
820,000
760,000
720,000
1,280,000
1,500,000
The beginning inventory for 2014 is 210,000 units. The budgeted inventory at the end of a month is
30 percent of units to be sold the following month. Purchase price per unit is $7 per unit.
Required: Prepare a purchases budget in units and dollars for each month, January through
ACC 610 Week 7
1. Band Instruments Company has the following sales budget for the first three months of the current
year:
Month
January
February
March
Sales Revenue
$600,000
150,000
440,000
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of
the sale. November and December sales were $100,000 and $200,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for January, February,
and March.
2. Budgeted sales of gloves for Perfect Fit Hands for the first six months of the year 2014 are as follows:
Months
January
February
March
April
May
June
Unit Sales
700,000
820,000
760,000
720,000
1,280,000
1,500,000
The beginning inventory for 2014 is 210,000 units. The budgeted inventory at the end of a month is
30 percent of units to be sold the following month. Purchase price per unit is $7 per unit.
Required: Prepare a purchases budget in units and dollars for each month, January through
May.
May.
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Rating:
/5
Solution: Band Instruments Company has the following sales budget