Question

Cash Budget Daybook Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $105,000 for September and $116,000 for October, what are the budgeted cash receipts from sales on account for October?

Answer 1

A 1 2 Cash Budget 3 Budgeted Cash receipts from sales on account for October 4. 5 September Sales 6 October Sales 105000 116000 8 30% Same month 9 70% following month 10 Total Cash receipts budgeted =+B6*0.3 =+B5*0.7 =SUM(B8:39) 11 13

Cash Budget
Budgeted Cash receipts from sales on account for October
September Sales	1,05,000
October Sales	1,16,000
30% Same month	34800
70% following month	73500
Total Cash receipts budgeted	108300

Production Budget	Units
Sales	4,00,000
Add: Closing Stock desired	23,500
Less: Opening Inventory	-20,000
Budgeted Production	4,03,500

Particulars	Square yards
Opening Inventory	40400
Add: Purchases (Balancing figure)	2419500
Less: Closing inventory desired	-38900
Production (403500 journals * 6 yards for each journal)	=403500*6
Direct Materials Purchases Budget	=2419500*0.4
	=$ 967,800

Ε Time required in minutes =403500*8 Time required in hours =+E4/60 Direct Labor Cost =53800*13

Time required in minutes	3228000
Time required in hours	53800
Direct Labor Cost	6,99,400