Information pertaining to Noskey Corporation's sales revenue is presented in the following table.
| |
November
Year 1
(Actual) |
December
Year 1
(Budget) |
January
Year 2
(Budget) |
| Cash sales |
$80,000 |
$100,000 |
$60,000 |
| Credit sales |
240,000 |
360,000 |
180,000 |
| Total sales |
$320,000 |
$460,000 |
$240,000 |
Management estimates that 5% of credit sales will be credit losses. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Purchases of inventory are equal to next month's sales and gross profit margin is 30%. All purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder are paid in the month following the purchase.
Noskey Corporation's budgeted total cash receipts in January Year 2 are?
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Mahek Kukreja
None
Raipur CT
India
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