Alderman Corporation has found that 70% of its sales in any given month are credit sales,...

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Alderman Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Alderman Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 20% received two months after the sale 5% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 20% Two months after Total cash collections. Alderman Corporation Cash Collections Budget For the Months of January through March January February March Quarter November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales... February sales March sales $ 145,000 $ 135,000 $ 185,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.) Alderman Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Alderman Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 20% received two months after the sale 5% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 20% Two months after Total cash collections. Alderman Corporation Cash Collections Budget For the Months of January through March January February March Quarter November sales for last year were $90,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales... February sales March sales $ 145,000 $ 135,000 $ 185,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)

Answer rating: 100% (QA)

To prepare the cash collections budget for the first quarter we need to calculate the cash collections for each month based on the given information 1 ... View the full answer