• Case (1);

Z. Company has the following data:

1- A/R, May equals $ 120.000

2- Monthly forecasted sales

June $ 400.000

July 500.000

August 600.000

September 700.000

3- Sales consists of 70% cash and 30% credit, all credit sales are collected

60% in the next month and 30% after two months of the sale

4- Uncollectiable accounts are calculate 10%

Required;

Prepare the Cash Collections Budget.

• Case (2);

The total sales for 2019 , Q1 $ 100,000 , Q2 300,000, Q3 400,000, Q4 200,000

The company collected 50% of sales in the quarter in which the sale is made and

30% in the next quarter and 20% in the following quarter , the balance of A/R for

Dec,2018 was $ 60,000

Required :

Prepare the Cash Collections Budget