Question
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 50,000 $ 150,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |||
| January | $ | 50,000 | $ | 150,000 |
| February | $ | 55,000 | $ | 170,000 |
| March | $ | 29,000 | $ | 130,000 |
| April | $ | 24,000 | $ | 109,000 |
| May | $ | 34,000 | $ | 200,000 |
| June | $ | 80,000 | $ | 30,000 |
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 $71,000, of which $55,000 represents uncollected December sales and $16,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
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Auditing And Other Assurance Services
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
10th Canadian Edition
0131296159, 978-0131296152
