Brooklyn Studios sales are all made on account. The firms collection experience has been that 25% of
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Brooklyn Studio’s sales are all made on account. The firm’s collection experience has been that 25% of a month’s sales are collected in the month the sale is made, 60% are collected in the month following the sale, and 14% are collected in the second month following the sale. The sales forecast for the months of September through December is as follows:
Required:
Calculate the cash collections that would be included in the cash budgets for November and December.
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Sales forecast Cash collections 25 of current months ...View the full answer
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