Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

And include February, march, and quarter as well.....thank you St. Germaine Corporation has found that 70% of its sales in any given month are credit

image text in transcribedAnd include February, march, and quarter as well.....thank you

St. Germaine 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, St. Germaine Corporation has experienced the following collection pattern: November sales for last year were $90,000, while December sales were $120,000. Projected sales for the next three months are as follows: 25% received in the month of the sale 50% received in the month after the sale 20% received two months after the sale January sales................ $ February sales ...............$ 150,000 125,000 March sales ... . D 16 . . . . . . . . . . . . . . . 5% of the credit sales are never received 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.) St. Germaine Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 25% Month of sale 50% Month after 20% 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

Step: 3

blur-text-image

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

Horngren S Financial And Managerial Accounting The Managerial Chapters

Authors: Tracie L. Miller-Nobles ,Brenda L. Mattison ,Ella Mae Matsumura

4th Edition

0133255433, 978-0133255430

More Books

Students also viewed these Accounting questions

Question

How can an entity avoid having a court pierce the veil?

Answered: 1 week ago

Question

Does it have correct contact information?

Answered: 1 week ago