Task 1: 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
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.
Task 2: 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
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 step by step.