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At Teasdale Company, past experience reveals that 2 0 % of sales are for cash and the remaining 8 0 % are on credit. As
At Teasdale Company, past experience reveals that of sales are for cash and the remaining are on credit. As the accountants at Teasdale Company prepare a cash budget, what will they do with these percentages?
Adjust the percentages over time as the company learns about its customers payment patterns
Use a lower percentage of credit sales in each month to create a conservative budget.
Use the same percentages each month in order to maintain consistency.
Use a higher percentage of credit sales in each month to reflect inflation.
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