Anderson Corporation has found that $80\%$ of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Anderson Corporation 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

Anderson Corporation

Cash Collections Budget

For the Months of January through March

Cash sales

January

Collections on credit sales:

$25\%$ Month of sale

$50\%$ Month after

$65000$

$18\%$ Two months after

Total cash collections

Question $5,$ E$9-30$A $($similar to$)$

HW Score: $81\%,16\mathrm{.}2$ of $20$ points

Part $2$ of $4$

Points: $0\mathrm{.}2$ of $2$

ven month are credit sales, while the remainder are arienced the following collection pattern:

November sales for last year were $$90,000,$ while December sales were $$125,000.$ Projected sales for the next three months are as follows:

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)

Answer To prepare a cash collections budget for the first quarter January through March well follow ... View the full answer