Coronado Company's budgeted sales and direct materials purchases are as follows

 

Coronado'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. Coronado'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. 

(a) Prepare a schedule of expected collections from customers for March. 

(b) Prepare a schedule of expected payments for direct materials for March. 

Transcribed Image Text:

January February March Budgeted Sales $184,000 202,400 230,000 Budgeted D.M. Purchases $27,600 33,120 34,960 January February March Budgeted Sales $184,000 202,400 230,000 Budgeted D.M. Purchases $27,600 33,120 34,960

Answer rating: 100% (QA)

a Schedule of expected collection from customers Ma... View the full answer