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Anderson Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the
Anderson Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales February sales. March sales.. 165,000 $ 130,000 $ 200,000 Cash sales Collections on credit sales: 25% Month of sale Anderson Corporation Cash Collections Budget For the Months of January through March January February $ 33,000 33,000 50% Month after 50,000 18% Two months after 12,960 $ 128,960 Total cash collections 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.)
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