1. Beta company has developed the following sales projection for next year:
- May $100,000
- June 120,000
- July 140,000
- Aug 160,000
- Sep 150,000
- Oct 130,000
Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month folloing the sale. The remaining 5% of sales is never collected. Beta's budgeted cash collections for the third calendar quarter are?
2. A company has budgeted sales for the upcoming quarter as follows:
- Jan: 15,000
- Feb: 18,000
- March: 16,500
The ending finished goods inventory for each month equals 50% of the next months budgeted sales. Additionally, 3 pounds of raw materials is required for each finished unit produced. The ending raw materials inventory for each month equals 200% of the next month's production requirements. If the raw materials cost $4.00 per pound and must be paid for in the month purchased, the budgeted raw materials purchases for January are?