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Mitchell Company had the following budgeted sales for the first half of next year: Cash Sales Credit Sales January $50,000 $150,000 February $55,000 $170,000 March
Mitchell Company had the following budgeted sales for the first half of next year: |
Cash Sales | Credit Sales | |
January | $50,000 | $150,000 |
February | $55,000 | $170,000 |
March | $39,000 | $130,000 |
April | $44,000 | $139,000 |
May | $54,000 | $200,000 |
June | $80,000 | $290,000 |
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: |
Collections on credit sales: |
40% in month of sales |
30% in month of following sales |
30.0% in second month following sales |
Assume that the accounts receivable balance on January 1 was $65,000. Of this amount, $54,000 represented uncollected December sales and $11,000 represented uncollected November sales. Given these data, the total cash collected during January would be: |
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