Question
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 .
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started