Assignment: Wynn Corporation is approximating the following sales for the first six months of the next year:
January.......................$212,000.00
February.....................$385,000.00
March..........................$275,000.00
April.............................$500,000.00
May..............................$325,000.00
June..............................$400,000.00
Question 1. Sales at Wynn are usually collected as 75% in the month of sale, 15% in the month following the sale, and the remaining 10% being uncollectible. Also, the customers paying in the month of sale are given a 3% discount. Based on this information, how much cash should Wynn expect to collect during the month of April? Please show your answer step by step.
Blimpy's sales budget shows quarterly sales for the next year as follows:
Quarter Sales (units)
First............................5,000
Second........................10,000
Third...........................8,500
Fourth........................15,000
Question 2. Blimpy's policy is to have a finished goods inventory at the end of each quarter equal to 18% of the next quarter's sales. Budgeted production for the second quarter should be what? Please show your answer.