Reference no: EM132843675

Sales revenue budget is below:

                                  November               December                 January

Cash Sales              $96,000               $125,000               $78,000

Credit Sales             $288,000              $450,000                 $234,000

Total Sales                $384,000            $575,000                 $312,000

1. Management estimates that 4% of credit sales would be uncollectible. Of the collectible credit sales, 60% would be collected in the month of sale and the remainder in the month following the sale.
2. The firm desires to begin each month with 75% of the month's projected total sales on hand.
3. All purchases of inventory were to be on account. 30% would be paid in the month of purchase, and the remainder would be paid in the month following the purchase.
4. The purchase costs are 50% of the selling prices.

Problem 1: The total budgeted cash collections in December

Problem 2: The budgeted beginning inventory in November

Problem 3: The budgeted ending inventory in November

Problem 4: The portion of December sales that will be collected in January