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The budgeted sales for the four months of operation are provided below :The budgeted sales and sales in units are
1.September-470000and 570
2.October-500000and 600
3.November-650000and 750
4.December-780000and 880
Additional information:
The company sales product to customers on both credit and cash.The company expect that 20%of sales will be for cash and paid immediatelyby the customer. The remaining 80% are credit sales and will be paid as 30% on the month of sales and the remaining amount to be paid in the month following sale. The company's past experienceindicate the inventory levels at the end of the month must equal to 20% of the next month sale. The Budget sale in unit for the month of August is 470 and sales totaled 350000.
Problem 1: create a schedule of expected cash collection from sales for the last quarter.
Problem 2: create a production budget for the last quarter.
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