Information Pertaining To Noskey Corporation S Sales Revenus Includes This November 2903890
Information pertaining to Noskey Corporation’s sales revenus includes this: November December January 2012 (Actual) 2012 (Budgeted) 2013 (Budgeted) Cash Sales $80,000 $1,00,000 $60,000 Credit Sales $2,40,000 $3,60,000 $1,80,000 TOTAL Sales $3,20,000 $4,60,000 $2,40,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales of the current month (stated at cost). All inventory purchases are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following purchase. Purchase costs are approximately 60% of the selling price.