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Q1. Calculation of budgeted cash collections.
The Patuxent Rail Company's sales for the next three months are as follows:
February
$165,000
March
$170,000
April
$155,000
Collection history for the company indicates that 60% of sales are collected in the month of the sale, 38% is collected in the following month, and 2% of sales are uncollectible.
Budgeted cash receipts for April are?
Q2. Calculation of budgeted purchases of raw materials.
Each unit produced by the Kinderware Company requires 6 pounds of raw materials. The company has 12,000 pounds of material on hand at the beginning of May. The raw materials inventory must be equal to 10% of the next month's production. Budgeted production for May and June are as follows:
May
20,000 units
June
25,000 units
Budgeted purchases of raw materials sales for May are?
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By accessing this problem Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor.
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