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Jan Feb Mar Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. Apr Cash sales $15,000
Jan Feb Mar Shown below is the sales forecast for Cooper Inc. for the first four months of the coming year. Apr Cash sales $15,000 $24,000 $18,000 $14,000 Credit sales $100,000 $120,000 $90,000 $70,000 On average, 50% of credit sales are paid for in the month of the sale, 30% in the month following sale, and the remainder are paid two months after the month of the sale. Assuming there are no bad debts, the expected cash inflow in March is: $ 138,000 $122,000 $119,000 $108,000 Budgeted sales in Acer Corporation over the next four months are given below. September October November December Budgeted sales....... $140,000 $150,000 $170,000 $130,000 Twenty-five percent of the company's sales are for cash and 75% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 15% are collected in the second month following sale. The remainder are uncollectible. Given these data, cash collections for December should be: $103,875 $98,125 $ 136,375 $119,500
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