Question
Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as follows: Month Sales revenue August $160,000 September $155,000 October
Question 2. (cash receipts from sales) Budgeted sales revenue for the coming five months is as follows:
Month | Sales revenue |
August | $160,000 |
September | $155,000 |
October | $155,000 |
November | $115,000 |
December | $180,000 |
You estimate that you will collect 35% of sales revenue in the month of sale, 35% in the following month, 25% two months after the sale, and the remaining 5% three months after the sale. Required: Compute budgeted cash inflows for November and December. November = $ December = $ (Hint: pay attention to the timing, e.g. "35% is collected in the following month" means 35% of August revenue is collected in September, i.e., cash receipts (inflows) for September include 35% of previous month's sales revenue.)
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