1) Company ABC budgeted sales for March as 22,000 units, April as 25,000 units, and May as 28,000 units. The selling pri

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1) Company ABC budgeted sales for March as 22,000 units, April
as 25,000 units, and May as 28,000 units. The selling price per
unit is $10. Company ABC only sells on credit and collects 75% in
the month of sale, with 25% collected in the month following the
sale. The February 28th accounts receivable balance was $32,000.
What is the amount of cash collections expected in March?
a. $173,000 b. $165,000 c. $228,000 d. $197,000
2) Company Zeta budgeted sales for March as 21,000 units,
April as 23,000 units, and May as 24,000 units. The selling
price per unit is $11. Company Zeta only sells on credit and
collects 80% in the month of sale, with 20% collected in the month
following the sale. The February 28th accounts receivable
balance was $18,000. What is the amount of sales expected in
April?
a. $248,600
b. $202,400
c. $231,000
d. $253,000
Company ABC budgeted sales for March as 22,000 units, April as
25,000 units, May as 28,000 units, and June as 22,000 units.
On February 28th, the company had 8,000 units on hand.
Desired ending inventory is equal to 18% of the following
month’s budgeted sales in units. What is the required
production for the month of March in units?
a. 14,000
b. 18,500
c. 25,960
d. 20,960
*Please explain each step and what formulas you used*