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13-142
136.
Parker Company has forecast its sales as follows:
November
$190,000
(actual)
December
$240,000
(actual)
January
$280,000
February
$300,000
March
$350,000
April
$320,000
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137.
Past experience has demonstrated that 55% of the net sales billed in a month are
collected during the month, 35% are collected in the following month and 9% are collected
in the second following month. Customers are allowed a 3% discount if payment is made
within 5 days after the billing date. 65% of the customers that pay in the month of the sale,
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pay within 5 days and take the discount. A sales budget for the four months ending June
30th is as follows:
Month
Units
Selling
Price
March
30,000
$5.20
April
50,000
5.20
May
80,000
5.60
June
40,000
5.60
Required:
Prepare a cash receipts budget for May and June.
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138.
Falcon Enterprises expects the following unit sales over the next five months:
Month
Unit Sales
April
400,000
May
480,000
June
540,000
July
600,000
August
560,000
Falcon's goal is to maintain an inventory equal to 20% of next month's sales requirements.
March 31st inventory is projected to be 70,000 units.
Required:
Prepare a purchases budget (in units) for Falcon for as many months as is possible.
Assume a 30-day month.
139.
Templeton Enterprises expects the following unit sales over the next few months:
Month
Unit Sales
June
100,000
July
120,000
August
135,000
September
150,000
October
140,000
November
125,000
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148.
149.
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150.
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151.
Autumn Corporation makes and sells a single product called a Security Surge. The
company is in the process of preparing its Marketing and Administrative Expense Budget
for the last quarter of the year. The following budget data are available:
Variable Cost
Per Security
Surge Sold
Monthly
Fixed Cost
Sales
commissions
$1.50
Shipping
$2.30
Advertising
$4.50
$36,000
Executive salaries
$146,000
Depreciation on
office equipment
$13,000
Other
$0.60
$36,000
