You will be using the budgeting assumptions provided for Milo-Freeze Company. Milo-Freeze Company...

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You will be using the budgeting assumptions provided for Milo-Freeze Company. Milo-Freeze Company manufactures and sells a product that has seasonal variations in demand with peak sales coming in the third quarter. The following information concerns operations for Year 2 (the coming year) and for the first two quarters of Year 3. You are asked to prepare a Master Budget report to assist in their decision making. You will prepare the following budgets.Sales budgetCash collections budgetProduction budgetDirect materials budgetSchedule of expected cash payments for purchases of materials

Nitish Lath · Accepted Answer

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Sales Budget
	Milo-Freeze Company
	Sales Budget
	For the year
		Year 2 Quarter
		1	2	3	4	Year 2
	Budgeted unit sales	40,000	60,000	100,000	50,000	250,000
	Selling price per unit	$   10.00	$   10.00	$   10.00	$   10.00	$   10.00
	Total Sales	400,000	600,000	1,000,000	500,000	2,500,000
	Percentage of sales collected in the period of the sale			75%	 
	Percentage of sales collected in the period after the sale			25%	 
Cash Collections Budget
	Milo-Freeze Company
	Cash Collections Budget
	For the year
	Percentage of sales collected in the period of the sale			75%	 
	Percentage of sales collected in the period after the sale			25%	 
	 	Year 2 Quarter				 
		1	2	3	4	Year 2
	Accounts receivable, beginning Balance	$   65,000				$   65,000
	First quarter sales	300,000	$   100,000			400,000
	Second quarter sales		450,000	$   150,000		600,000
	Third quarter sales			750,000	$   250,000	1,000,000	 
	Fourth quarter sales				375,000	375,000	 
	Total cash collections	$   365,000	$   550,000	$   900,000	$   625,000	$   2,440,

You will be using the budgeting assumptions provided for Milo-Freeze Company. Milo-Freeze Company manufactures and sells a product that has seasonal variations in demand with peak sales coming in the...

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