The following is the sales budget for Lemonis, Inc., for the first quarter of 2022: Credit sales

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The following is the sales budget for Lemonis, Inc., for the first quarter of 2022:

Credit sales are collected as follows:
65 percent in the month of the sale.
20 percent in the month after the sale.
15 percent in the second month after the sale.

The accounts receivable balance at the end of the previous quarter was $81,000 ($59,000 of which were uncollected December sales).
a. Compute the sales for November.
b. Compute the sales for December.
c. Compute the cash collections from sales for each month from January through March.

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Corporate Finance

ISBN: 9781260772388

13th Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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