Question
Watts Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March $49,000 June $53,000 April 55,000 July
Watts Lighting Stores made the following sales projection for the next six months. All sales are credit sales.
| March | $49,000 | June | $53,000 | |
| April | 55,000 | July | 61,000 | |
| May | 44,000 | August | 63,000 | |
Sales in January and February were $52,000 and $51,000, respectively. Experience has shown that of total sales, 5 percent are uncollectible, 40 percent are collected in the month of sale, 50 percent are collected in the following month, and 5 percent are collected two months after sale.
a. Prepare a monthly cash receipts schedule for the firm for March through August.
| January | February | March | April | May | June | July | August | |
| Credit Sales | ||||||||
| In month of sale | ||||||||
| One month after sale | ||||||||
| Two months after sale | ||||||||
| Total cash receipts |
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Contemporary Issues In Behavioral Finance
Authors: Simon Grima
1st Edition
1787698823, 978-1787698826
