Question
Question 2 Required From the information given below, calculate the forecast cash receipts from clients for April, May and June. Use a table to answer
Question 2
Required
- From the information given below, calculate the forecast cash receipts from clients for April, May and June. Use a table to answer the question
The budgeted monthly service revenues for China Transport Solutions Ltd for January to June are as follow:
January February March April May June | $840 000 760 000 820 000 860 000 900 000 960 000 |
All the firms invoicing for services is on a credit basis. All payments received from clients on time receive a 5% discount. All fees are due the month after the services are performed. Approximately 75% of the credit billings are collected in the month following the service, 15% are collected in the second month following, and 10% are collected in the third month after invoicing.
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