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Calculations Cash Budget (C) Cash Receipts Budget Frutie tea Limited begins business on 1 January of the current year and sells delicious fruit juice for
Calculations Cash Budget
(C) Cash Receipts Budget Frutie tea Limited begins business on 1 January of the current year and sells delicious fruit juice for $4.00 per bottle. The company's founder and lead marketing guru estimates first-quarter sales (in boxes) as follows: January 3000 February 2400 March 3200 Total 8 600 The company expects cash to be collected in the following manner: 60 per cent of sales collected in month of sale 30 per cent of sales collected in month following sale 10 per cent of sales collected in second month following sale. Required: Prepare a cash receipts budget for the first quarter. How much will customers owe the company at the end of March if sales are exactly as estimated Step by Step Solution
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