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You are the owner of a new, BBQ and Patio Accessories Store in Calgary. You have budgeted the following information regarding next years operating results
| You are the owner of a new, BBQ and Patio Accessories Store in Calgary. | ||||||||
| You have budgeted the following information regarding next years operating results and cash flow patterns: | ||||||||
| Sales Type | % of Total | Collection Pattern | ||||||
| Credit card sales | 55% | 70% | in the quarter of sale | |||||
| 30% | in the quarter following sale | |||||||
| Cash sales | 25% | 100% | in the quarter of sale | |||||
| Sales on account | 20% | 65% | in the quarter of sale | |||||
| 25% | in the quarter following sale | |||||||
| 10% | in the 2nd quarter following sale | |||||||
| Total Budgeted Sales: | ||||||||
| 1st quarter | 450,000 | |||||||
| 2nd quarter | 365,000 | |||||||
| 3rd quarter | 260,000 | |||||||
| 4th quarter | 560,000 | |||||||
| Required: Based on the above information prepare a schedule of budgeted cash | ||||||||
| collections for the 3rd quarter. | ||||||||
Note- Introductory management accounting
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Fundamental Accounting Principles Volume II
Authors: Larson Kermit, Jensen Tilly
14th Canadian Edition
71051570, 0-07-105150-3, 978-0071051576, 978-0-07-10515, 978-1259066511
