Swifty Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales...

 

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Swifty Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $216,000 237,600 270,000 (a) Budgeted D.M. Purchases $32.400 38,880 41,040 Swifty'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. Swifty'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. Prepare a schedule of expected collections from customers for March. Swifty Company's budgeted sales and direct materials purchases are as follows. January February March Budgeted Sales $216,000 237,600 270,000 (a) Budgeted D.M. Purchases $32.400 38,880 41,040 Swifty'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. Swifty'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. Prepare a schedule of expected collections from customers for March.

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To prepare the schedule of expected collections from customers for March we need to calculate the ca... View the full answer