Flagstaff Co. has actual sales for July and August and forecast sales for September, October, November, and
Question:
Actual:
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,500
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,750
Forecasted:
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,500
October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,500
November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,500
December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,250
Based on past experience, it is estimated that 30% of a month’s sales are collected in the month of sale, 50% are collected in the month following the sale, and 18% are collected in the second month following the sale.
Required:
Calculate the estimated cash receipts for September, October, and November.
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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