Sound Investments, Incorporated, is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of $20$x$2.$ Past experience has indicated that $75$ percent of the store$$s sales are cash sales. The collection experience for the sales on account is as follows:

$80$ percent during month of sale

$15$ percent during month following sale

$5$ percent uncollectible

The total sales for December $20$x$1$ are expected to be $$196,000.$ The controller feels that sales in January $20$x$2$ could range from $$112,000$ to $$160,000.$

Required:

$1.$ Demonstrate how financial planning can be used to project cash receipts in January of $20$x$2$ for three different levels of January sales. Use the following columnar format.

$!$

Required information

$[$The following information applies to the questions displayed below$]$

Sound Investments, Incorporated, is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of $202.$ Past experience has indicated that $75$ percent of the store's sales are cash sales. The collection experience for the sales on account is as follows:

$80$ percent during month of sale

$15$ percent during month following sale

$5$ percent uncollectible

The total sales for December $201$ are expected to be $$196,000.$ The controller feels that sales in January $202$ could range from $$112,000$ to $$160,000.$

Required:

Demonstrate how financial planning can be used to project cash receipts in January of $202$ for three different levels of January sales. Use the following columnar format.

$\backslash$table$[[,$Total Sales in January, $202$

$1$

Required information

$1$ points

eBook

Hint

Print

References

$[$The following information applies to the questions displayed below.$]$

Sound Investments, Incorporated, is a large retailer of stereo equipment. The controller is about to prepare the budget for the first quarter of $202.$ Past experience has indicated that $75$ percent of the store's sales are cash sales. The collection experience for the sales on account is as follows:

$80$ percent during month of sale

$15$ percent during month following sale

$5$ percent uncollectible

The total sales for December $201$ are expected to be $$196,000.$ The controller feels that sales in January $202$ could range from $$112,000$ to $$160,000.$

Required:

Demonstrate how financial planning can be used to project cash receipts in January of $202$ for three different levels of January sales. Use the following columnar format.

$\backslash$table$[[,$Total Sales in January, $202$