Reference no: EM133016448
Question -
Q1. XYZ Company manufactures and sell wooden product. It wants to prepare cash budget for the second quarter of the year. The company's sales budget for the second quarter given below:
April May June Total
Budgeted Credit sales $470,000 $670,000 $230,000 $1,370,000
Credit sales are collected as follows:
25% in the same month of sale
65% in the month following sale
10% in the second month following sale
February sales totaled $400,000, and March sales totaled $430,000.
Required - 1 Prepare the cash collection schedule for the second quarter.
2. What is the accounts receivable balance on June 30th?
Q2. ABC Corporation has estimated the following information for first quarter of 2020 for one of its products:
January February March
Units to be produced 128,000 140,000 152,000
Desired ending inventory of finished goods 30,000 36,000 38,000
The ending inventory at December 2019 was 28,000 units.
Required - Prepare the Production Budget and the Sales Budget for the first quarter of 2020, assuming selling price per unit is $20.