Reference no: EM132520737

The following information is available from the budget of ScramJet Ltd.

                                 Sales                      Purchases of Raw Materials

January 2011         $ 800,000                        $120,000

February 2011           $ 900,000                     $150,000

March 2011                $1,200,000                   $200,000

All purchases are made on account with 40% paid for in the month of purchase and 60% in the following month. Twenty percent of sales are for cash and 80 per cent of sales are made on credit. Credit sales are collected 50% in the month of sale and 50% in the following month.

REQUIRED:

Question a. Compute the budgeted cash collections for March.

Question b. Compute budgeted Accounts Receivable for March 31.

Question c. Compute the budgeted cash payments for purchases for March.

Question d. Compute the budgeted Accounts Payable for March 31.