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Calculate January, Fabuary, Mrach and quarter, thanks! LaChut Corporation has found that 70% of its sales in any given month are credit sales, while the
Calculate January, Fabuary, Mrach and quarter, thanks!
LaChut Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, LaChut Corporation has experienced the following collection pattern: November sales for last year were $90,000, while December sales were $110,000. Projected sales for the next three months are as follows: 25% received in the month of the sale 50% received in the month after the sale 20% received two months after the sale 5% of the credit sales are never received March sales $ 170,000 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.) LaChut Corporation Cash Collections Budget For the Months of January through March January Cash sales 49,500 Collections on credit sales: 28,875 25% Month of sale 50% Month after 20% Two months after Total cash collections
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