Question
Flowerama specializes in floral arrangements and experiences its highest sales and delivery volume on February 14. Below is the first quarter sales budget for
Flowerama specializes in floral arrangements and experiences its highest sales and delivery volume on February 14. Below is the first quarter sales budget for Flowerama: Budgeted sales (all on account) January February March $470,000 $670,000 $230,000 Total $1,370,000 From prior years data, the company predicts that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. Prior years sales are as follows: November sales totaled $400,000, and December sales totaled $430,000. Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the first quarter. 2. What is the accounts receivable balance on March 31th? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of expected cash collections from sales, by month and in total, for the first quarter. Schedule of Expected Cash Collections January February March Total November sales $ 117,500 167,500 57,500 $ December sales 279,500 305,500 435,500 January sales 40,000 43,000 47,000 342,500 1,020,500 130,000 February Sales 0 March Sales Total cash collections $ 437,000 $ 516,000 $ 540,000 $1,493,000
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