Answered step by step
Verified Expert Solution
Question
1 Approved Answer
hello, i have most answers filled in, if you can just help me with the ones i left blank for parts a and b, thank
hello, i have most answers filled in, if you can just help me with the ones i left blank for parts a and b, thank you!
Graham Potato Company has projected sales of$21,000 in September, $22,500 in October, $31,000 in November, and $27,000 in December. Ofthe company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $26,000 and$18,500, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Graham Potato Company Cash Receipts Schedule october November December September s 31.000 21,000 22,500 27,000 Sales 14,700 21,700 18,900 Credit sales 15,750 s 9,300 Cash sales 8,100 One month after sale Two months after sale S 9,300 Total cash receipts 8,100Step 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