College Finance Level 1 - Financial Forecasting

Power Ridge Corporation has forecast credit sales for the fourth quarter of the year as follows September (actual) $58,000 Fourth Quarte October November December $48,000 43,000 68,000 Experience has shown 20 percent of sales are collected in the month of sale, 60 percent are collected in the following month, and 20 percent are never collected Prepare a cash receipts schedule for Power Ridge Corporation covering the fourth quarter (October through December) Power ridge corporation Cash Receipt Schedule September October November December Sale Collections of Current Sales Collections of prior month's Sales Total cash receipts