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28 November, 06:11

Hewitt Company expects cash sales for July of S15.000, and a 22% monthly increase during August and September. Credit sales of $10,000 in July should be followed by 30% increases during August and September. What are budgeted cash sales and budgeted credit sales for September respectively?

a) $19, 500 and $12, 200

b) $22, 326 and $16, 900

c) $18, 300 and $13,000

d) $25, 350 and $14, 884

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  1. 28 November, 06:40
    0
    b) $22, 326 and $16, 900

    Explanation:

    The computation is shown below:

    Budgeted cash sales

    July cash sales

    = $15,000

    August sales

    = July sales + July cash sales * monthly increase

    = $15,000 + $15,000 * 22%

    = $15,000 + $3,300

    = $18,300

    September sales

    = August sales + august sales * monthly increase

    = $18,300 + $18,300 * 22%

    = $18,300 + $4,026

    = $22,326

    Budgeted credit sales

    July cash sales

    = $10,000

    August sales

    = July sales + July cash sales * monthly increase

    = $10,000 + $10,000 * 30%

    = $10,000 + $3,000

    = $13,000

    September sales

    = August sales + august sales * monthly increase

    = $13,000 + $13,000 * 30%

    = $13,000 + $3,900

    = $16,900
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