Question
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 the schedule ofbudgeted cashcollections for the 3rd quarter.
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Get StartedRecommended Textbook for
Applied Corporate Finance
Authors: Aswath Damodaran
4th edition
978-1-118-9185, 9781118918562, 1118808932, 1118918568, 978-1118808931
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