Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to ask how can i get these number that have a red mark? St. Laurent Wholesalers has found that 84% of its sales

image text in transcribed

I want to ask how can i get these number that have a red mark?

St. Laurent Wholesalers has found that 84% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, St. Laurent Wholesalers has experienced the following collection pattern: November sales for last year were $83,000, while December sales were $119,000. Projected sales for the next three months are as follows: January sales. $ 159,000 February sales 126,000 24% paid in the month of the sale 48% paid in the month after the sale 17% paid two months after the sale March sales $ 177,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. 11% of the sales are never collected March Quarter January 25,440 | $ February 20,160 || $ Cash sales $ 28,320 Collections on credit sales: 24% Month of sale 32,054 25,402 35,683 48% Month after 47,981 64,109 50,803 17% Two months after 11,852 16,993 22,705 $ 117,327 $ 126,664 $ 137,511 Total cash collections

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions