Question
Cookie Company Budgeted credit sales are as follows: December last year $250,000 January $125,000 February $300,000 March $90,000 Collection: Month of the sale 80% Month
Cookie Company
Budgeted credit sales are as follows:
December last year $250,000
January $125,000
February $300,000
March $90,000
Collection:
Month of the sale 80%
Month following the sale 20%
Estimated cash receipts
January February March
Last month's sales ? ? ?
Current month's sales ? ? ?
Total ? ? ?
What are your observations about the way cash is collected if the company needs $150,000 per month for expenses?? Why is there such a big difference between each month?
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Asymmetric Cost Behavior Implications For The Credit And Financial Risk Of A Firm
Authors: Kristina Reimer
1st Edition
3658228210, 9783658228217
