Cash Receipts and Payments Information pertaining to Noskey Corporation’s sales revenue fo...

Cash Receipts and Payments Information pertaining to Noskey Corporation’s sales revenue follows:

Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.

Required Determine for Noskey:

1. Budgeted cash collections in December 2015 from November 2015 credit sales.

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2. Budgeted total cash receipts in January 2016.

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3. Budgeted total cash payments in December 2015 for inventory purchases.

(CPA Adapted)