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Question 5 (10.5 marks) Bauer Corp. (Bauer) anticipates the following sales revenue over a five-month period: November December January February March Sales revenue $20,000 $22,000
Question 5 (10.5 marks) Bauer Corp. (Bauer) anticipates the following sales revenue over a five-month period: November December January February March Sales revenue $20,000 $22,000 $26,000 $18,000 $21,000 Bauer's sales are 40% cash and 60% credit. Bauer's collection history indicates that credit sales are collected as follows: Month of sale Month after sale Two months after sale Uncollectible 20% 50% 25% 5% Required: Prepare a cash collections budget for each month in the quarter (January, February, and March). (10.5 marks)
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