Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kerwin Corporation Cash Collections Budget For the Months of January through March Kerwin Corporation has found that 80% of its sales in any given month

Kerwin Corporation
Cash Collections Budget
For the Months of January through March
image text in transcribed

Kerwin Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Kerwin Corporation has experienced the following collection pattern: are as follows: January sales. ..... .... 25% received in the month of the sale February sales ..... ..... .. 50% received in the month after the sale March sales. ..... .. 15% received two months after the sale Requirement 10% of the credit sales are never received November sales for last year were $110,000, while December sales were $115,000. Projected sales for the next three months 170,000 130,000 180,000 Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.) Kerwin Corporation Cash Collections Budget For the Months of January through March Cash sales Collections on credit sales: 25% Month of sale 50% Month after 15% Two months after Total cash collections January 34,000 34,000 46,000 13,200 127,200 February 26,000 26,000 68,000 13,800 133,800 March 36,000 36,000 52,000 20,400 144,400 Quarter

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Accountability Ethics And Sustainability Of Organizations

Authors: Sandro Brunelli, Emiliano Di Carlo

3rd Edition

3030311929, 9783030311926

More Books

Students also viewed these Accounting questions

Question

4. Analyzing: Breaking something down into its parts.

Answered: 1 week ago

Question

6. List and explain important trends in compensation management.

Answered: 1 week ago

Question

What are our strategic aims?

Answered: 1 week ago