Question
The following is the sales budget for Tesoro Azul, Inc., for the first quarter of 2016: January February March Sales budget $134,000 $151,000 $166,000 Credit
The following is the sales budget for Tesoro Azul, Inc., for the first quarter of 2016:
January | February | March | |
Sales budget | $134,000 | $151,000 | $166,000 |
|
Credit sales are collected as follows: 70 percent in the month of the sale 25 percent in the month after the sale 5 percent in the second month after the sale The accounts receivable balance at the end of the previous quarter was $67,350 ($58,800 of which was uncollected December sales). a. Compute the sales for November. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Sales $ b. Compute the sales for December. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Sales $ c. Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Cash Collection | |
January | $ |
February | $ |
March | $ |
|
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