Reference no: EM132056508
Questions -
Q1. Many of your customers buy on credit (i.e., part of sales revenue is collected several months after the sale).
On average, you collect 60% of revenue in the month of sale, 35% of revenue in the following month, and 5% of revenue 2 months later.
What are your cash inflows in May?
Month Sales
March $150
April $100
May $ 130
Q2. Jays store budgeted sales are as follows
Jan $150,000
Feb $160,000
Mar $172,000
The company expects to collect 75% of a month's sales in the month of sale and 25% in the following month.
What are the cash receipts for February?
Q3. Budgeted sales price is $10, actual is $12.
Budgeted sales volume is 2,500 units, actual is 2,400 units.
Budgeted unit VC is $5, actual is $6.
Compute sales volume variance and sales price variance?