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    Fruity Juice Company: Prepare the sales and cash collections budgets

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    Fruity Juice Company plans to sell 800,000 bottles of its best-selling fruit juice blend during the first quarter of 2005 at a price of $12 per bottle. Budgeted sales for the first four months of 2005 are:

    January ........................................ 200,000 bottles
    February ...................................... 250,000 bottles
    March .......................................... 350,000 bottles
    April ................................. ................. 400,000 bottles

    Fruity Juice has the following collection policy:

    Cash Collections
    Current Month 20%
    One Month After Sale 50%
    Two Months After Sale 25%
    5% is written off at the end of the second month

    Prepare the sales and cash collections budgets for Fruity Juice for April only using the space provided on the answer sheet. You MUST show complete supporting computations to earn credit for your answer.

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    https://brainmass.com/business/cash-budgeting/fruity-juice-company-prepare-sales-cash-collections-budgets-83740

    Solution Preview

    The solution to your above posted problem is provided herewith in a separately attached excel file. I have presented the solution in the following parts.

    1 Sales Budget for four months from Jan to April. Complete four months figures are worked out so as to enable you to understand all calculations in a sequence.

    2 ...

    Solution Summary

    The revised solution presents the budgets in Excel format.

    $2.19

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