Gatcheva Inc shows a cash balance of 24 000 on
Gatcheva, Inc. shows a cash balance of $ 24,000 on January 1, 2008. The expected sales (in units) of its product by month for the first quarter are
January .................................................. 600,000
February ................................................ 400,000
March ................................................... 500,000
Sales are collected 75 percent in the month of sale and 25 percent in the month following the sale. Actual sales (in units) by month for the previous quarter follow:
October ............................................................ 550,000
November ........................................................ 700,000
December ......................................................... 800,000
Gatcheva sells its product for $ 2 each.
Required
A. Determine the expected unit and dollar sales by month for the first quarter.
B. Determine the expected cash receipts by month for the first quarter.
C. Determine the anticipated accounts receivable balance by month for the first quarter.
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