Nieto Company\'s budgeted sales and direct materials purchases are as follows Bu

Question

Nieto Company's budgeted sales and direct materials purchases are as follows Budgeted D.M Purchases January February March Budgeted Sales %278,100 307,100 283,600 $39,600 42,900 42,000 Nieto'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. Nieto s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase and 6 6 n he month following purchase. Prepare a schedule of expected collections from customers for March. (Round answers to O decimal places, e.g. 2,50o. NIETO COMPANY Expected Collections from Customers March Total collections

Explanation / Answer

Expected cash collection in march :

Expected payment in march :

March Cash sales (283600*30%) 85080 January credit sales collection (278100*70%*36%) 70081 February credit sales collection (307100*70%*50%) 107485 March credit sales collection (283600*70%*10%) 19852 Total collection 282498

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