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.)
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Cash sales for August = July cash sales + Increase in August = $19,000 + $4,180 = $23,180
Cash sales increase in September = August cash sales * 22% = $23,180 * 0.22 = $5,099.60
Cash sales for September = August cash sales + Increase in September = $23,180 + $5,099.60 ≈ $28,280 (rounded to the nearest dollar)
Next, let's calculate the credit sales for August: July credit sales are $5,000. The monthly increase for August is 31%. Credit sales increase in August = $5,000 * 31% = $5,000 * 0.31 = $1,550
Credit sales for August = July credit sales + Increase in August = $5,000 + $1,550 = $6,550
Credit sales increase in September = August credit sales * 31% = $6,550 * 0.31 = $2,030.50
Credit sales for September = August credit sales + Increase in September = $6,550 + $2,030.50 ≈ $8,581 (rounded to the nearest dollar)
the budgeted credit sales for September are approximately $8,581.