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The owner of Tiger Trading Ltd. has approached you to help her to predict cash collections from customers in the month of June 2022. To
The owner of Tiger Trading Ltd. has approached you to help her to predict cash collections from customers in the month of June 2022. To assist your task, she has provided you with the following information: Tiger Trading is a shirt wholesaler based in Lalor, VIC. Selling price per shirt is $10 (Ignore GST) Monthly Budgeted Income Statement 30 April 2022 in $ 31 May 2022 in $ 30 June 2022 in $ 30 July 2022 in $ Sales 80,000 100,000 110,000 90,000 LESS: Cost of Sales (32,000) (40,000) (44,000) (36,000) GROSS PROFIT 48,000 60,000 66,000 54,000 LESS EXPENSES: Salaries/Wages (10,000) (10,000) (10,000) General Expenses (15,000) (3,000) (28,000) Depreciation (10,000) (20,000) (3,000) (33,000) (17,500) (3,000) (30,500) (18,000) (3,000) (31,000) TOTAL EXPENSES NET PROFIT 20,000 29,500 33,000 23,000 ADDITIONAL INFORMATION: Past history shows that 30% of sales are cash sales and 70% of sales are made on credit. The basis for cash collections from credit customers are: 60% in the month of sale. 30% in the month following the sale. 10% in the second month following the sale. Required: Prepare a schedule of cash collections for the month of June 2022. (5 Marks) B. I : Please type in your answers below. Schedule of cash collections
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