Question
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:
August sales (actual) $ 48,000 September sales (actual) $ 58,000 October sales (estimated) $ 28,000 November sales (estimated) $ 78,000 December sales (estimated) $ 68,000 Approximately 70% of all sales are collected in the month of the sale, 25% is collected in the following month, and 5% is collected in the month thereafter. 5. Required information Budgeted collections from customers in October total: $34,100. $44,900. $134,000. $36,500. 6. Required information Budgeted collections from customers in December total: $68,500. $67,100. $58,500. $174,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started