Question
Budgets Sunshine Corporation has found that 60% of its sales in any given month are credit sales, while the remainders are cash sales. Of theCredit
Budgets
Sunshine Corporation has found that 60% of its sales in any given month are credit sales, while the remainders are cash sales. Of theCredit sales, the company has experienced the following collection
Pattern:
25% received in the month of the sale
50% received in the month after the sale
15% received two months after the sale
10% of the credit sales are never received
November sales for last year were $85,000, while December sales
Were $110,000. Projected sales for the next three months are as follows:
January sales
$ 145,000
February sales
$115,000
March sales
$175,000
Requirement
Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter.
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