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The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 60,000 $ 160,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 60,000 $ 160,000 February $ 65,000 $ 180,000 March $ 50,000 $ 140,000 April $ 45,000 $ 130,000 May $ 55,000 $ 210,000 June $ 90,000 $ 240,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 45% in month of sale 35% in month following sale 20% in second month following sale The accounts receivable balance on January 1 of the current year was $85,000, of which $55,000 represents uncollected December sales and $30,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $ 60,000 $ 160,000
February $ 65,000 $ 180,000
March $ 50,000 $ 140,000
April $ 45,000 $ 130,000
May $ 55,000 $ 210,000
June $ 90,000 $ 240,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
45% in month of sale
35% in month following sale
20% in second month following sale
The accounts receivable balance on January 1 of the current year was $85,000, of which $55,000 represents uncollected December sales and $30,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
