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please help me in this 3.5 All-Season Gloves Ltd. finished December 2010 with a balance of $450,000 in its accounts receivable. January's sales are forecast
please help me in this
3.5 All-Season Gloves Ltd. finished December 2010 with a balance of $450,000 in its accounts receivable. January's sales are forecast to be $560,000 (90% on credit) and are expected to grow by 2% per month for the entire year. Assume all amounts are collected in the month following the sale. Required: Calculate the sales, the ending balance in accounts receivable, and the cash received for each month in 2011. 3.6 Four Seasons Boots Ltd. had sales in November 2010 of $538,255. Ten percent of the sales were cash sales, with 70% of the credit sales collected one month after the sale, 25% collected two months after the sale, and 5% written off as bad debts. Sales are expected to grow by 2% per month between December 2010 and the end of 2011. Required: (a) Prepare a cash inflow budget for each month in 2011. kb) Show the collection and write-off results for January's salesStep by Step Solution
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