Question
Budgeted sales revenue for the coming five months is as follows: Month Sales revenue August $170,000 September $185,000 October $180,000 November $100,000 December $200,000 You
Budgeted sales revenue for the coming five months is as follows:
Month | Sales revenue |
August | $170,000 |
September | $185,000 |
October | $180,000 |
November | $100,000 |
December | $200,000 |
You estimate that you will collect 35% of sales revenue in the month of sale, 40% in the following month, 15% two months after the sale, and the remaining 10% three months after the sale. Required: Compute budgeted cash inflows for November and December. November = $ December = $ (Hint: pay attention to the timing, e.g. "40% is collected in the following month" means 40% of August revenue is collected in September, i.e., cash receipts (inflows) for September include 40% of previous month's sales revenue.)
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