Question

Hewitt Company expects cash sales for July of $ 19 comma 000​, and a 22​% monthly increase during August and September. Credit sales of $ 5 comma 000 in July should be followed by 31​% increases during August and September. What are budgeted cash sales and budgeted credit sales for September​ respectively? (Round final answers to the nearest​ dollar.)

Answer 1

Answer:

$28,279.60 and $8,580.50

Explanation:

The computation of the budgeted cash sales and budgeted credit sales for September​ is shown below:

For cash sales:

= July cash sales + July cash sales × increased percentage + Total cash sales × increased percentage

= $19,000 + $19,000 × 22% + $23,180 × 22%

= $28,279.60

The total cash sales = $19,000 + $19,000 × 22%

For credit sales:

= July credit sales + July credit sales × increased percentage + Total credit sales × increased percentage

= $5,000 + $5,000 × 31% + $6,550 × 31%

= $8,580.50

The total cash sales = $19,000 + $19,000 × 22%