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Anglo American is currently working on its Cash Budget. The companys sales for the next six months are as follows (all amounts in Rand): JANUARY
Anglo American is currently working on its Cash Budget. The companys sales for the next six months are as follows (all amounts in Rand):
JANUARY : 600 000 | FEBRUARY: 700 000 | MARCH: 500 000 |
APRIL: 800 000 | MAY: 1000 000 | JUNE: 900 000 |
The financial manager for Anglo American found that 50% of the sales are done in cash and the remainder is on credit.
Credit sales are collected as follows
30% in the first month following the month of sales
50% in the second month following the month of sales
The remainder in the third month following the month of sales
Required:
Calculate the total credit collections from credit sales for April, May and June
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