Expected cash receipts amount

Assignment Help Accounting Basics

Reference no: EM13787241

Problem I

Part A -

Singller Inc., budgeted sales of 30,000 units of its product in January, 2016. Budgeted inventory balances are:

January 1 January 31

Finished Goods (units) 6,500 5,600

Required:

What is the expected production in units for January, 2016?

Part B

Pynchon Enterprises expects to make the following sales revenue in the first quarter of the calendar year 2016 as follows:

January February March

Sales $180,000 $135,000 $162,000

25% of the sales are on account (accounts receivable), while the other 75% are for cash. The collection pattern for Pynchon's accounts receivable follows:

Collections for:

Current month's credit sales........... 50%

First month after credit sales.......... 30%

Second month after credit sales..... 18%

Uncollectible Accounts Receivable..2%

Required:

How much will the expected cash receipts amount to for the month of March, 2016?

Part C

Poe Corporation had budgeted operating income for 2015 of $6,300,000. The actual operating income was $6,556,000. The flexible-budget operating income was $6,930,000.

Required:

1. Calculate the total static-budget variance.

2. Calculate the total flexible-budget variance.

Reference no: EM13787241

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