Pharoah Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $140,600; February $191,800; March $252,000 Budgeted direct materials purchases: January $40,100; February $35,300; March $40,100 Pharoah's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Pharoah's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March.

Pharoah Company's budgeted sales and direct materials purchases follow. January was the first month of operations. Budgeted sales: January $140,600; February $191,800; March $252,000 Budgeted direct materials purchases: January $40,100; February $35,300; March $40,100 Pharoah's sales are 35% cash and 65% credit. It collects credit sales 40% in the month of sale, 60% in the month following the sale. Pharoah's purchases are 40% cash and 60% on account. It pays purchases on account 60% in the month of purchase, and 40% in the month following purchase. Prepare a schedule of expected collections for January, February, and March.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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