Question
..what is the breakdown of calculation or formula please? Mitchell Company had the following budgeted sales for the first half of next year: Cash Sales
..what is the breakdown of calculation or formula please?
| Mitchell Company had the following budgeted sales for the first half of next year: |
| Cash Sales | Credit Sales | |
| January | $30,000 | $130,000 |
| February | $35,000 | $150,000 |
| March | $41,000 | $110,000 |
| April | $46,000 | $141,000 |
| May | $56,000 | $180,000 |
| June | $60,000 | $310,000 |
| 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 credit sales: |
| 50% in month of sales |
| 40% in month of following sales |
| 10.0% in second month following sales |
| Assume that the accounts receivable balance on January 1 was $67,000. Of this amount, $56,000 represented uncollected December sales and $11,000 represented uncollected November sales. Given these data, the total cash collected during January would be: |
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
