Exercise 22-17 Nieto Company’s budgeted sales and direct materials purchases are as follows. Budgeted Sales Budgeted D. M. Purchases January $274,000 $37,700 February 233,300 40,600 March 296,500 52,000 Nieto’s sales are 30% cash and 70% credit. Credit sales are collected 10% in the month of sale, 50% in the month following sale, and 36% in the second month following sale; 4% are uncollectible. Nieto’s purchases are 50% cash and 50% on account. Purchases on account are paid 40% in the month of purchase, and 60% in the month following purchase. Prepare a schedule of expected collections from customers for March.

Explanation:

The preparation of the schedule of expected collections from customers for March is presented below:

                                              Nieto Company’s

                             Expected Collections from customers

Particulars                     Calculations                    Amount ($)

March cash sales          (30% × $296,500)                $88,950

Collection of March credit sales[(70% × $296,500) × 10%]        $20,755

Collection of February credit sales[(70% ×  $233,300) × 50%]$81,655

Collection of January credit sales[(70% × $274,000) × 36%]$69,048

Total collections                                                                        $260,408

answer; (c) run the name by everyone you can;

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;