The budget committee of Clipboard Office Supply has assembled the following data. Sales in April are expected to be $48,000. Clipboard forecasts that monthly sales will a. increase 5% over April sales in May. June's sales will increase by 10% over April sales. July sales will increase 15% over April sales. Cash receipts are 80% in the month of the sale and 20% in the month following the sale. b. Clipboard maintains inventory of $9,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Purchases are paid 40% in the month of the purchase and 60% in the month following the purchase. c. Monthly salaries amount to $6,000. Sales commissions equal 5% of sales for that month. Salaries and commissions are paid 60% in the month incurred and 40% in the following month.

Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $40,000 and $77,000, respectively. The company expects to collect 30% of its credit sales in the month of the sale and the remaining 70% in the following month. What is the expected cash collections from credit sales during the first month?

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: October September October November $125,000 $154,000 $201,000 53,000 66,000 72,000 76,000 48,000 44,000 46,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, Insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual Insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Sales Manufacturing costs Selling and administrative expenses Capital expenditures Current assets as of September 1 include…

Primary Co. has budgeted sales of $228,000 in October and $312,000 in November. The company expects it will collect 70% of cash from sales in the month of the sale. The remaining 30% of cash will be collected the next month. What is the expected cash to be collected in November? $68,400 $286,800 $312,000 $253,200