Question: Five Bros Inc is an automobile maintenance and repair company

Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble the cash budget for the fourth quarter. Projected sales for the quarter follow.

Cash collection records pertaining to sales on account indicate the following collection pattern:
Month of sale ............ 40%
First month following sale ....... 30%
Second month following sale ..... 28%
Uncollectible ............. 2%
Sales on account during August were $346,000. During September, sales on account were $390,000.
Compute the amount of cash to be collected from customers during each month of the fourthquarter.

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  • CreatedMarch 26, 2014
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