Question
2- XYZ Company makes collections on sales according to the following schedule: Expected Sales February $ 130,000 March $ 170,000 April $ 200,000 50% in
2- XYZ Company makes collections on sales according to the following schedule:
|
| Expected Sales |
| February | $ 130,000 |
| March | $ 170,000 |
| April | $ 200,000 |
50% in the month of sale
20% in the month following sale 30% in the second month following sale
The Treasury Manager conducts an analysis of the cash collection and determines that cash collection target for April should be $225,000.
(a) Do you agree with collection target of April?
(b) Why or why not?
(c )Present your Cash Collection Schedule for February to April.
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Data Analysis And Sampling Simplified A Practical Guide For Internal Auditors
Authors: Donald A. Dickie PhD
1st Edition
1634540611, 978-1634540612
