Question
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 80,000 $ 180,000
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
| Cash Sales | Credit Sales | |||
| January | $ | 80,000 | $ | 180,000 |
| February | $ | 85,000 | $ | 200,000 |
| March | $ | 31,000 | $ | 160,000 |
| April | $ | 26,000 | $ | 111,000 |
| May | $ | 36,000 | $ | 230,000 |
| June | $ | 110,000 | $ | 50,000 |
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:
55% in month of sale
30% in month following sale
15% in second month following sale
The accounts receivable balance on January 1 of the current year was $68,000, of which $54,000 represents uncollected December sales and $14,000 represents uncollected November sales.
The total cash collected during January by LaGrange Corporation would be:
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