Question
Hyde Catering Inc. is a caterer of corporate lunches and events. The following is Hyde's sales forecast by quarter for the upcoming year. Hyde Catering
Hyde Catering Inc. is a caterer of corporate lunches and events. The following is Hyde's sales forecast by quarter for the upcoming year.
| Hyde Catering Inc. Forecasted Sales For the Year Ended December 31, 2020 | |||||
| Q1 | Q2 | Q3 | Q4 | Total | |
| Sales | $124,000 | $309,000 | $346,000 | $233,000 | $1,012,000 |
In addition, sales in Q3 and Q4 of 2019 totaled $127,000 and $220,000 respectively. According to the company's sales records, all revenue is invoiced (i.e. credit sales). Assume the following historical trends were noted by management regarding credit sales:
46% of credit customers pay during the quarter in which the sale took place
28% of credit customers pay in the quarter immediately following the quarter of sale
26% of credit customers pay in the second quarter following the quarter of sale
Do not enter dollar signs or commas in the input boxes.
Prepare a schedule of cash receipts on a quarterly basis.
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
978-0073526706, 9780073526706
