Cash Receipts Budget and Accounts Receivable Aging Schedule

Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:

Quarter $1$

$$4,600,000$

Quarter $2$

$5,100,000$

Quarter $3$

$5,000,000$

Quarter $4$

$7,600,000$

In Shalimar's experience, $10$ percent of sales are paid in cash. Of the sales on account, $65$ percent are collected in the quarter of sale, $25$ percent are collected in the quarter following the sale, and $7$ percent are collected in the second quarter after the sale. The remaining $3$ percent are never collected. Total sales for the third quarter of the current year are $$4,900,000$ and for the fourth quarter of the current year are $$6,850,000.$

Required:

Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year.

Quarter

$3,$ current year

$4,$ current year

$1,$ next year

$2,$ next year

$3,$ next year

$4,$ next year

Cash Sales

$

Credit Sales

$2.$ Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. If an amount is zero, enter $"0".$

Shalimar Company

Cash Receipts Budget

For the Coming Year

Quarter $1$ Quarter $2$ Quarter $3$ Quarter $4$

rach cales

$$