Space Cadet Pty Ltd produces three toy space people, which are sold to local retail stores. The
Question:
Space Cadet Pty Ltd produces three toy space people, which are sold to local retail stores. The marketing department expects the following sales performance for the next year:
Toy | Selling price | Annual sales (units) | |||
Space Boy Space Lady Electric Space Man | $50 60 90 | 80000 60000 40000 | |||
The budgeted annual sales are distributed by month in the following percentages:
Month | Percentage of annual sales | |||
January February March April May June July August September October November December | 2 3 4 4 5 12 6 6 8 12 16 22 | |||
100% |
The cash from sales is collected, 70% in the month of sale and the remainder in the following month.
Required
Prepare a monthly sales budget in units and dollars for all three space people combined for the months July to December. Show the receivables in the balance sheet at the end of July to December and the budgeted cash collections from sales for July to December.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett