The total budgeted sales of Nana Kay Ltd for October, the first month of the last quarter
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Question:
The total budgeted sales of Nana Kay Ltd for October, the first month of the last quarter in 2019 were GHS1,900,000. Sales are expected to increase by GHS100,000 in each month. Cash sales for each month are GHS200,000 and the remaining are credit sales. All the products are sold at a mark up of the cost plus 25 per cent. On average, Nana Kay Ltd collects 60 per cent of the credit sales in the month of sale and 35 per cent in the month following sales. The remainder is uncollectible. Determinethe budgeted total cash receipt for each month of the last quarter of 2019andthe expected account receivables at the end of the quarter
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