Question

The Master Budget Sales and cash collections budgets Augustine Reeds, a manufacturer of saxophone, oboe, and clarinet reeds, has projected sales to be: October November December January $904,000 $964,000 $1,045,000 $936,000 Augustine's sales are: 20% cash 80% credit The company's collection history indicates that credit sales are collected as follows: 30% in the month of the sale 60% in the month after the sale 8% two months after the sale 2% are never collected Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong. Requirements 1 Prepare a sales budget for all four months, showing the breakdown between cash and credit sales. 2 Prepare a cash collections budget for December and January. a. Use cell references from the prior requirement, if applicable. Saving & Submitting Solution 1 Save file to desktop. a. Create folder on desktop, and label COMPLETED EXCEL PROJECTS 2 Upload and submit your file to be graded. a. Navigate back to the activity window - screen where you downloaded the initial spreadsheet b. Click Choose button under step 3; locate the file you just saved and click Open C. Click Upload button under step 3 d. Click Submit button under step 4 Viewing Results 1 Click on Results tab in My AccountingLab 2 Click on the Assignment you were working on 3 Click on Project link; this will bring up your Score Card 4 Within Score Card window, click on Live Comments Report (lower right) to download spreadsheet with feedback

Answer 1

B14 4 А в H october $ 904,000 november $ 964,000 december $1,045,000 january $936,000 sales are 20% 80% cash credit 30% 60% 8% 2% in the month of sale in the month after the sale two months after the sale are never collected Augestine Reeds sales budget for the four months ended january october november $180,800 $ 192,800 $ 723,200 $ 771,200 $ 904,000 $ 964,000 | cash sales credit sales total sales revenue december $ 209,000 $ 836,000 $ 1,045,000 january $ 187,200 $ 748,800 $936,000 Augestine Reeds budgeted cash collections from customers for the months of december and january month december january cash sales in current month $ 209,000 $ 187,200 collection on credit sales: credit sales from current month $ 250,800 $ 224,640 credit sales made one month ago $ 462,720 $ 501,600 credit sales made two month ago $ 57,856 $ 61,696 total cash collections $ 980,376 $ 975,136

for formulas and calculations, refer to the image below -

B14 А В october november 964000 december 1045000 january 936000 904000 sales are 0.2 cash credit 0.8 0.3 0.6 0.08 0.02 in the month of sale in the month after the sale two months after the sale are never collected Augestine Reeds sales budget for the four months ended january october november =C3*$C$6 =D3*$C$6 =C3*$C$ 7 =D3*$C$7 =SUM(D18:019) LESUM(E18:519) cash sales credit sales total sales revenue december january |=E3*$C$6 |=F3*$C$6 =E3*$C$7 =F3*$C$7 =SUM(F18:F19) =SUM(G18:519) Augestine Reeds budgeted cash collections from customers for the months of december and january month december january cash sales in current month =F18 =G18 collection on credit sales: credit sales from current month =F19*C9 =G19*09 credit sales made one month ago = 19*010 =F19*C10 credit sales made two month ago =D19*C11 = 19*C11 total cash collections =D27+D29+D30+D31 =E27+E29+30+E31

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