The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: January $ 130,000 February $ 147,000 Sales budget Credit sales are collected as follows: March $ 162,000 70 percent in the month of the sale. 25 percent in the month after the sale. 5 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $65,950 ($57,600 of which was uncollected December s a. Compute the sales for November. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. Compute the sales for December. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. c. Compute the cash collections from sales for each month from January through March. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.
The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022: January $ 130,000 February $ 147,000 Sales budget Credit sales are collected as follows: March $ 162,000 70 percent in the month of the sale. 25 percent in the month after the sale. 5 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $65,950 ($57,600 of which was uncollected December s a. Compute the sales for November. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. b. Compute the sales for December. Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. c. Compute the cash collections from sales for each month from January through March. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
7
Transcribed Image Text:The following is the sales budget for Lemonis, Incorporated, for the first quarter of 2022:
January
$ 130,000
Credit sales are collected as follows:
Sales budget
February
$ 147,000
a. November sales
b. December sales
c. January collections
February collections.
March collections
March
$ 162,000
Check my work
70 percent in the month of the sale.
25 percent in the month after the sale.
5 percent in the second month after the sale.
The accounts receivable balance at the end of the previous quarter was $65,950 ($57,600 of which was uncollected December sales).
a. Compute the sales for November.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
b. Compute the sales for December.
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
c. Compute the cash collections from sales for each month from January through March.
Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.
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