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Ruby Service anticipates the following sales revenue over afive-month period: Thecompany's sales are 40 % cash and 60% credit. nov . dec . jan .

Ruby Service anticipates the following sales revenue over afive-month period:

Thecompany's sales are 40 % cash and 60% credit.

nov . dec . jan . feb . march

sales revenue . 16,400 . 11,000 . 15,800 . 12,800 . 14,200

____________________________________________________________

Its collection history indicates that credit sales are collected asfollows:

How much cash will be collected inJanuary? InFebruary? InMarch? For the quarter intotal?

20 % in month of the sale

40% in the month after the sale

30% two month after the sale

10% are never collected

Complete the cash budget to determine how much cash will be collected

jan . feb . march . qaurter

cash sales .

collection of credit sales:

20% month of sale .

40% month of after

30% two months after .

total cash collections .

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