Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

22. LaChut Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the

22.

image text in transcribedimage text in transcribedimage text in transcribed
LaChut Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, LaChut Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 25% received two months after the sale 15% of the credit sales are never receivedNovember sales for last year were $80,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales . . . . $ 150,000 February sales . .. . $ 125,000 March sales. . . . . $ 180,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)LaChut Corporation Cash Collections Budget For the Months of January through March January February March Quarter Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone Of Business Decision Making

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

8th Edition

0357715349, 978-0357715345

More Books

Students also viewed these Accounting questions

Question

2. To store it and

Answered: 1 week ago