Required information The following information applies to the questions displaye

Question

Required information The following information applies to the questions displayed below On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) September sales (actual) October sales (estimated) November sales (estimated) December sales (estimated) 34,000 $44,000 $25,000 $ 64,000 54,000 Approximately 65% of all sales are collected in the month of the sale, 20% is collected in the following month, and 15% is collected in the month thereafter. udgeted collections from customers in October total: Multiple Choice $30150. $103,000. $38.900 $25,050

Explanation / Answer

1) Calculation of Budgeted Cash Payment for the month of October to December Months August Septemebt October November December Sales $     34,000.00 $      44,000.00 $     25,000.00 $      64,000.00 $     54,000.00 1)      65% of the sales are collected in the month of sales $     22,100.00 $      28,600.00 $     16,250.00 $      41,600.00 $     35,100.00 2)     20% is collected in following month of Sales $        6,800.00 $       8,800.00 $        5,000.00 $     12,800.00 3)     15% is collected in month therafter $       5,100.00 $        6,600.00 $       3,750.00 Total Expected cash Flow ( ) $     22,100.00 $      35,400.00 $     30,150.00 $      53,200.00 $     51,650.00 Answer =1 = Budgeted Collection for the month of October = Option 1 = $ 30,150 Answer =2 = Budgeted Collection for the month of November = Option 2 = $ 53,200 Answer =3 = Budgeted Collection for the month of December = Option 1 = $ 51,650

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