Reference no: EM133169426

Question 1 - Widget Manufacturing Company is preparing a profit budget and has projected that net sales will equal $470,000 for the period and that fixed manufacturing costs will be $150,000. Additionally, Widget expects variable manufacturing costs to be 55% of net sales. Widget manufacturing expects no changes to any inventory values from the beginning of the period to the end of the period. Use this information to determine Widget Manufacturing Company's budgeted gross profit.

Question 2 - Widget manufacturing Company began operations on January 1. All sales are on credit. Widget has sales budgeted as $150,000 for January and $260,000 for February. Accounts Receivable collections are expected to be 60% in the month of sale, 30% the next month, and 10% in the third month. Use this information to determine the dollar value of February Expected Cash Collections from Customers.