You were recently hired as an assistant controller at the Hairy Yak Yarn Company ("the Company"). Your employer manufactures and sells a single product: balls of yarn! With people learning to knit because of the COVID-19 pandemic, the Company has seen a significant increase in demand for their yarn.

The first task you have been assigned in your new role is to prepare the master budget for the quarter ended March 31^st, 2023.

You have assembled the following information.

Information on sales

The yarn balls sell for $25 each. Recent and budgeted sales (in units) are as follows:

November (actual) 10,000

December (actual) 11,000

January 12,000

February 11,000

March 11,000

April 9,000

May 10,000

All sales are on credit, with no discount. The company has found that only 25% of a month's sales are collected by month-end. An additional 70% is collected in the month following the sale, and the remaining 5% is collected in the second month following the sale. Bad debts have been negligible, so they can be ignored for the purposes of the budget.

REQUIRED:

1 - Prepare the following for the company for the quarter ending March 31^st:

a)

1. Sales Budget and Schedule of Expected Cash Collections

PLEASE HELP WITH THE REQUIRED WITH ALL THE INFO PROVIDED ABOVE

Answer rating: 100% (QA)

To prepare the Sales Budget and Schedule of Expected Cash Collections for the quarter ending March 3... View the full answer