Sales in December were $960,000. Projected sales for the first quarter of next year are:
Question:
Sales in December were $960,000. Projected sales for the first quarter of next year are:
January | $1,080,000 | |
February | $1,300,000 | |
March | $1,280,000 |
Sales are 20% cash and 80% on credit. Debtors pay in the month following the sale.
Calculate the total cash sales for the three months, January, February and March.
The Kelsey Company sells a product for $10. Budgeted sales for the first quarter of next year are as follows:
|
| Budgeted Sales |
| January | $400,000 |
| February | $600,000 |
| March | $700,000 |
The company collects 70% in the month of sale and 25% in the following month. Five percent of all sales are uncollectible and written off.
Budgeted cash receipts for February are:
If a firm had credit sales of $1,550,000 for March and collected its sales 30% in the month of sale and 70% in the month following the sale, how much of March sales would be collected in cash in March?
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton