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Unformatted text preview: Acc 200P Name: _______ KEY _______________________ Chapter 9 Take-home Quiz PROBLEM I : (25 points) Putnam Inc. sells widgets. The price of each widget is $2. Putnam collects 65% of a month’s sales in the month of sale, 30% in the month following sale, and the remaining 5% in the second month following sale. Budgeted sales (in units) for the first three months of 2013 are as follows: January 20,000 units February 15,000 units March 8,000 units How much cash will be collected in the month of March ? Answer: _________ 21,400 _________ January sales collected in March: 20,000 units x $2.00 x 5% = $ 2,000 February 15,000 units x $2.00 x 30% = 9,000 March 8,000 units x $2.00 x 65% = 10,400 Total Cash Collected in March $21,400 PROBLEM II : ( 25 points) Sellars Corp. sells bags of popcorn. The marketing department prepared the following first-quarter sales forecast: January 3,000 bags February 2,800 bags March 3,500 bags There were 240 bags on hand at the beginning of January and the company anticipates selling 2,000 bags in April. There were 240 bags on hand at the beginning of January and the company anticipates selling 2,000 bags in April....
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- Winter '08
- Managerial Accounting, budgeting process, Putnam Inc.