A company budgets sales for the next three months as follows. The company's sales are 40%...
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A company budgets sales for the next three months as follows. The company's sales are 40% for cash and 60% on credit. All credit sales are fully collected in the month after the sale. Total sales were $300,000 in April. May Budgeted sales $ 320,000 June $310,000 July $ 290,000 Prepare a schedule of cash receipts from sales for May, June, and July. Schedule of Cash Receipts from Sales Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts May June July $ 320,000 $ 310,000 $ 290,000 A company budgets sales for the next three months as follows. The company's sales are 40% for cash and 60% on credit. All credit sales are fully collected in the month after the sale. Total sales were $300,000 in April. May Budgeted sales $ 320,000 June $310,000 July $ 290,000 Prepare a schedule of cash receipts from sales for May, June, and July. Schedule of Cash Receipts from Sales Sales Cash receipts from: Cash sales Collections of prior period sales Total cash receipts May June July $ 320,000 $ 310,000 $ 290,000
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Answer rating: 100% (QA)
Cash Sales is the portion of sales that is for cash It is 40 of the total sales for the month Collec... View the full answer
Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
Posted Date:
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