E9.17 (L0 4), AP Nieto Company's budgeted sales and direct materials purchases are as follows....
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E9.17 (L0 4), AP Nieto Company's budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D.M. Purchases January $200,000 $30,000 February 220,000 36,000 March 250,000 38,000 Nieto's sales are 30% cash and 70 % credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4 % are uncollectible. Nieto's purchases are 50% cash and 50% on account, Purchases on account are paid 40% in the month of purchase, and 60% in the month following Purchase.
Instructions a. Prepare a schedule of expected collections from customers for March b. Prepare a schedule of expected payments for direct materials for March Prepare schedules for cash receipts and cash. payments, and determine ending balances for balance sheet.
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