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CWB Inc. has the following information: All budgeted cash collections will come from sales revenue. To calculate the budgeted cash collections, we will assume that
CWB Inc. has the following information: All budgeted cash collections will come from sales revenue. To calculate the budgeted cash collections, we will assume that 20% of CWB's revenue is from cash sales. The other 80% is from sales on credit, which is collected as follows: 60% of credit sales collected in the Quarter of sale. 40% of credit sales collected in the Quarter following the sale. Quarter 1: Cash collected from last year's Quarter 4 credit sales assumed to be $100,000.
Q1 Q2 Q3 Q4 Budgeted Sales Revenue ($) 400000 400000 400000 200000
| CWB Inc. has the following information: | ||||||||||
| All budgeted cash collections will come from sales revenue. To calculate the budgeted cash collections, we will assume that 20% of CWB's revenue is from cash sales. The other 80% is from sales on credit, which is collected as follows: | ||||||||||
| 60% of credit sales collected in the Quarter of sale. | ||||||||||
| 40% of credit sales collected in the Quarter following the sale. | ||||||||||
| Quarter 1: Cash collected from last year's Quarter 4 credit sales assumed to be $100,000. |
| Q1 | Q2 | Q3 | Q4 | |
| Budgeted Sales Revenue ($) | 400000 | 400000 | 400000 | 200000 |
1. Calculate cash collected in Quarter 2 for credit sales made during Quarter 1.
2. Calculate the budgeted cash receipts for the whole year.
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Principles of Economics
Authors: Robert Frank, Ben Bernanke
5th edition
73511404, 978-0073511405
