Question
Grammit Wholesalers has found that 76% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit
Grammit Wholesalers has found that 76% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Grammit Wholesalers has experienced the following collection pattern: 24% paid in the month of the sale 48% paid in the month after the sale 21% paid two months after the sale 7% of the sales are never collected November sales for last year were $79,000, while December sales were $118,500. Projected sales for the next three months are as follows: January sales February sales March sales Requirement $ 162,000 $ 126,000 $ 181,000 (Round your answers to the nearest whole dollar.) Grammit Wholesalers Cash Collections Budget For the Months of January through March Cash sales Collections on credit sales: 24% Month of sale 48% Month after 21% Two months after Total cash collections January February March Quarter Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter
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