Raber Corporation has found that 60% of its sales in any given month are credit sales, while

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Raber Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, the company has experienced the following collection pattern:
25% received in the month of the sale
50% received in the month after the sale
18% received two months after the sale
7% of the credit sales are never received
November sales for last year were $85,000, while December sales were $120,000. Projected sales for the next three months are as follows:
January sales . ............................................................................................... $170,000
February sales . ............................................................................................. $125,000
March sales . .................................................................................................. $185,000
Requirement
Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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