Hannahs Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2016. Hannah estimates
Question:
Hannah’s Handbags Pty Ltd is preparing a budget for the quarter ended 30 June 2016. Hannah estimates that approximately 70% the handbag sales will be for cash and the rest will be on credit. Of the credit sales, 20% of the money will be received in the month of sale, 40% will be received the following month and 38% will be received 2 months after sale. Approximately 2% of credit sales are never collected and are written off.
The actual sales for the previous quarter ended 31 March 2016 were as follows:
January $33620
February 34770
March 40180
The budgeted sales for the June quarter are as follows:
April $42640
May 43950
June 45920
Required
Calculate budgeted cash receipts for the quarter ended 30 June 2016.
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HANNAHS HANDBAGS PTY LTD Budgeted Cash Receipts from Sales April May J...View the full answer
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