ENTIAPROBLEM 7-A SALES BUDGETSales volume for the year 2017 has been estimated for Queennie Apparels as follows:ProductsDresses運ShirtsPantsQuartersFirst46,00049,00043,00040,000178,000VER18,00021,00032,00035,000SecondThirdFourthTotal24,00031,00020,00029,00083,000 127,000P100; Pants – P180. An estimatedSelling prices for these products are: Shirts - P65; Dresses -5% of sales is expected for sales returns and allowances. 80% of sales are on account and 20%is cash sales. 75% of credit sales is collected in the same quarter of the sale while 25% iscollected in the following quarter.Required:Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

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Business

Accounting

Required: Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.4E: Sales and production budgets Ultimate Audio Company manufactures two models of speakers. U500 and...

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Concept explainers

Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.

Question

ENTIA
PROBLEM 7-A SALES BUDGET
Sales volume for the year 2017 has been estimated for Queennie Apparels as follows:
Products
Dresses
運
Shirts
Pants
Quarters
First
46,000
49,000
43,000
40,000
178,000
VER
18,000
21,000
32,000
35,000
Second
Third
Fourth
Total
24,000
31,000
20,000
29,000
83,000 127,000
P100; Pants – P180. An estimated
Selling prices for these products are: Shirts - P65; Dresses -
5% of sales is expected for sales returns and allowances. 80% of sales are on account and 20%
is cash sales. 75% of credit sales is collected in the same quarter of the sale while 25% is
collected in the following quarter.
Required:
Prepare a sales budget for the year 2017 with a schedule of expected cash collections.

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