Question

Question 2 4.5 pts Zz, Inc. has budgeted sales in units for the next six months as follows: July August September October November December Budgeted Sales in Units 4,400 units 7,200 units 6,900 units 8,600 units ????? units 7,900 units All sales are made on account. The selling p rice is $23 per unit. The sales are collected in the pattern 11% in th e month of sale, 24% in the month following sale, 57% in the second month following sale, and the final 8% is collected in the third month following sale. zz, Inc. reported a budgeted accounts receiv able balance of $337,502 in its pro forma balance sheet at December 3 Calculate the number of units budgeted to be sold in November. Do not type the word units after your answer.

Answer 1

10,700
	July	August	September	October	November	December
Budgeted Sales in units	4,400	7,200	6,900	8,600	-	7,900
Selling Price	$23	$23	$23	$23	$23	$23
	$101,200	$165,600	$158,700	$197,800	$0	$181,700
Collection in December
July	11%	24%	57%	8%
August		11%	24%	57%	8%
September			11%	24%	57%	8%
October				11%	24%	57%	8%
November					11%	24%	57%	8%
December						11%	24%	57%	8%
Accounts Receivables
October	8%	$15,824
November	65%	-
December	89%	$161,713
		$177,537
Given Accounts receivable		$337,502
November Accounts rec in Dec 31		$159,965
So, Total Sales in November = $159,965 x 100/65 = $246,100
Number of units budgeted to be sold in November = $246,100 / $23 = 10,700