Nieto Company’s budgeted sales and direct materials purchases are as follows.
Budgeted Sales |
Budgeted D.M. Purchases |
||||
---|---|---|---|---|---|
January | $278,000 | $39,600 | |||
February | 307,100 | 42,900 | |||
March | 283,600 | 42,000 |
Nieto’s sales are 30% cash and 70% credit. Credit sales are
collected 10% in the month of sale, 50% in the month following
sale, and 36% in the second month following sale; 4% are
uncollectible. Nieto’s purchases are 50% cash and 50% on account.
Purchases on account are paid 40% in the month of purchase, and 60%
in the month following purchase.
(a)
Prepare a schedule of expected collections from customers for
March.
NIETO COMPANY |
||
---|---|---|
March |
||
select an item
Payment of March credit purchasesMarch cash purchasesJanuary cash salesCollection of March credit salesPayment of February credit purchasesMarch cash salesFebruary cash salesCollection of January credit salesCollection of February credit sales |
$enter a dollar amount | |
select an item
Collection of February credit salesMarch cash purchasesCollection of March credit salesCollection of January credit salesFebruary cash salesPayment of March credit purchasesPayment of February credit purchasesJanuary cash salesMarch cash sales |
enter a dollar amount | |
select an item
Collection of January credit salesMarch cash salesPayment of February credit purchasesCollection of March credit salesFebruary cash salesCollection of February credit salesJanuary cash salesMarch cash purchasesPayment of March credit purchases |
enter a dollar amount | |
select an item
January cash salesMarch cash salesCollection of February credit salesCollection of January credit salesPayment of March credit purchasesMarch cash purchasesFebruary cash salesPayment of February credit purchasesCollection of March credit sales |
enter a dollar amount | |
Total collections |
$enter a total amount |
(b)
Prepare a schedule of expected payments for direct materials for
March.
NIETO COMPANY |
||
---|---|---|
March |
||
select an item
March cash salesCollection of January credit salesCollection of February credit salesFebruary cash salesJanuary cash salesMarch cash purchasesPayment of March credit purchasesCollection of March credit salesPayment of February credit purchases |
$enter a dollar amount | |
select an item
February cash salesPayment of February credit purchasesMarch cash salesJanuary cash salesMarch cash purchasesCollection of January credit salesPayment of March credit purchasesCollection of February credit salesCollection of March credit sales |
enter a dollar amount | |
select an item
February cash salesMarch cash salesPayment of March credit purchasesJanuary cash salesMarch cash purchasesCollection of January credit salesPayment of February credit purchasesCollection of March credit salesCollection of February credit sales |
enter a dollar amount | |
Total payments |
$enter a total amount |
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Requirement a
NIETO COMPANY | ||
Expected Collections from Customers | ||
March | ||
Cash sales march | $ 85,080 | |
Collection of March credit sales | $ 19,852 | |
Collection of February credit sales | $ 107,485 | |
Collection of January credit sales | $ 70,056 | |
Total collections | $ 282,473 |
Working
January | February | March | |
Sales | $ 278,000.00 | $ 307,100.00 | $ 283,600.00 |
Cash sales | $ 83,400.00 | $ 92,130.00 | $ 85,080.00 |
Credit sales | $ 194,600.00 | $ 214,970.00 | $ 198,520.00 |
.
Requirement b
NIETO COMPANY | |
Expected Payments for Direct materials | |
March Cash Purchases | $ 21,000.00 |
Payment for march credit Purchases | $ 8,400.00 |
Payment for February credit Purchases | $ 12,870.00 |
Total Payments | $ 42,270.00 |
Working
Calculation of Payment for February Purchase | |
February Purchase | $ 42,900.00 |
Less: Paid in cash in February | $ 21,450.00 |
Purchase on Account | $ 21,450.00 |
On account Purchases Paid in February(21450*40%) | $ 8,580.00 |
On account Purchases Paid in march(21450*60%) | $ 12,870.00 |
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Nieto Company’s budgeted sales and direct materials purchases are as follows. Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. prepare a schedule of expected collections from...