Question
Service anticipates the following sales revenue over a five-month period: NOVEMBER DECEMBER JANUARY FEBRUARY MARCH SALES REVENUE $16200 $10000 $15600 $13200 $14800 The company's sales
Service anticipates the following sales revenue over a five-month period:
NOVEMBER | DECEMBER | JANUARY | FEBRUARY | MARCH | |
SALES REVENUE | $16200 | $10000 | $15600 | $13200 | $14800 |
The company's sales are 40 % cash and 60 % credit. Its collection history indicates that credit sales are collected as follows:
25% Month of sale
50% Month after
15% Two Months after
10% are never collected
How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March, and for the quarter in total. (Round your answers to the nearest whole dollar.)
CASH SALES | JANUARY | FEBRUARY | MARCH | QUARTER |
COLLECTION OF CREDIT SALES | ||||
25% MONTH OF SALE | ||||
50% MONTH AFTER | ||||
15% TWO MONTHS AFTER | ||||
TOTAL CASH COLLECTION |
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