Problem 16-10 Calculating Cash Collections [LO 3]

The following is the sales budget for Segura, Inc., for the first quarter of 2013:

	January	February	March
Sales budget	$136,000	$153,000	$168,000

Credit sales are collected as follows:

55 percent in the month of the sale

25 percent in the month after the sale

20 percent in the second month after the sale

The accounts receivable balance at the end of the previous quarter was $123,700 ($89,100 of which was uncollected December sales).

Required:

(a)	Compute the sales for November. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Sales

$

(b)	Compute the sales for December. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Sales

$

(c)	Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Cash Collection
January	$
February	$
March	$