Question
Halifax, Inc. is trying to prepare their budget for the third quarter. As part of the budget they need to determine the total cash that
Halifax, Inc. is trying to prepare their budget for the third quarter. As part of the budget they need to determine the total cash that will be collected from sales for each month. Halifax reports the following budgeted sales information necessary to calculate budgeted cash collections:
| June | July | August | September | |
|---|---|---|---|---|
| Sales | $655,940 | $665,360 | $667,890 | $631,860 |
20% of the monthly sales listed above are cash sales and are therefore collected right away and 80% of the sales are on account. The amount sold on account each month is collected the following month.
Calculate the amount of cash collected in July, August, and September. Round all answers to the nearest whole dollar.
| July | August | September | |
|---|---|---|---|
| Cash Sales | |||
| Cash collected from sales on account | |||
| Total Cash Collected |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Auditors Guide To IT Auditing
Authors: Richard E. Cascarino
2nd Edition
1118147618, 978-1118147610
