Zero Company Ltd. is required to prepare a cash budget for the quarter.

Actual sales for the last two months and budgeted sales for the third quarter follow (all sales are on account):

May $50,000

June 10,000

July 20,000

August 25,000

September 24,000

Past experience shows that 20% of a month’s sales are collected in the month of sale, 50% in the month following sale, and 30% in the second month following sale.

Required: 

Prepare a schedule of expected cash collections for the month of September.

Answer rating: 100% (QA)

Here in question given that i 20 collection received in same month and ii 50 collection received in ... View the full answer