Question
E9-29. Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: MonthSales Revenue May .............................................................$120,000 June ............................................................. 160,000 July.............................................................. 180,000 August ........................................................... 120,000
E9-29. Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:
MonthSales Revenue
May .............................................................$120,000
June ............................................................. 160,000
July.............................................................. 180,000
August ........................................................... 120,000
To prepare a cash budget, the company must determine the budgeted cash collections from sales.
Historically, the following trend has been established regarding cash collection of sales:
50 percent in the month of sale.
25 percent in the month following sale.
20 percent in the second month following sale.
5 percent uncollectible.
The company gives a 2 percent cash discount for payments made by customers during the
month of sale. The accounts receivable balance on April 30 is $24,000, of which $7,000 represents
uncollected March sales and $17,000 represents uncollected April sales.
Required
Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-
month summary of estimated cash collections.E9-29. Cash Receipts
The sales budget for Perrier Inc. is forecasted as follows:
MonthSales Revenue
May .............................................................$120,000
June ............................................................. 160,000
July.............................................................. 180,000
August ........................................................... 120,000
To prepare a cash budget, the company must determine the budgeted cash collections from sales.
Historically, the following trend has been established regarding cash collection of sales:
50 percent in the month of sale.
25 percent in the month following sale.
20 percent in the second month following sale.
5 percent uncollectible.
The company gives a 2 percent cash discount for payments made by customers during the
month of sale. The accounts receivable balance on April 30 is $24,000, of which $7,000 represents
uncollected March sales and $17,000 represents uncollected April sales.
Required
Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-
month summary of estimated cash collections.
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Handbook For Surviving The Global Financial Crisis
Authors: Barbara Goldsmith
1st Edition
1514811995, 978-1514811993
