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Mitchell Company had the following budgeted sales for the last half of last year: Cash Sales Credit Sales July $70,000 $170,000 August $75,000 $190,000 September
Mitchell Company had the following budgeted sales for the last half of last year: |
Cash Sales | Credit Sales | |
July | $70,000 | $170,000 |
August | $75,000 | $190,000 |
September | $54,000 | $150,000 |
October | $59,000 | $154,000 |
November | $69,000 | $220,000 |
December | $100,000 | $440,000 |
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% in second month following sales |
What is the budgeted accounts receivable balance on December 1? |
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