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Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern:
a. Prepare a schedule of cash collections for May through July.
b. Compute the expected balance in Accounts Receivable as of July 31
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This assignment is about different types of budget. Variance analysis is also used in the assignment to clarify the subject. It consists of total 5 questions which is based on budgeting. Direct Material, Labor and Analysis was the main focus of the area.
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