Question
My Company has forecast credit sales for the fourth quarter of the year as this: --------------------------------------------------------------------------------------------------------- Sept (actual) $50,000 Oct (estimate) 40,000 Nov (estimate) 35,000
My Company has forecast credit sales for the fourth quarter of the year as this:
---------------------------------------------------------------------------------------------------------
Sept (actual) $50,000
Oct (estimate) 40,000
Nov (estimate) 35,000
Dec (estimate) 60,000
---------------------------------------------------------------------------------------------------------
Time has shown that 20% of sales are collected that month, 70% the following month, and 10% are never paid.
Prepare a schedule of cash receipts for My Company covering the fourth quarter (Oct-Dec). For each of those 3 months, calculate the amount of cash my company expects to COLLECT from customers.
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
