High life Corporation has the following sales budget for the last four months of
ID: 2449207 • Letter: H
Question
High life Corporation has the following sales budget for the last four months of 2016:
September = $400,000
October = $320,000
November = $440,000
December = $360,000
Historically, the following trend has been established regarding cash collection of sales:
65 Percent in month of sale
25 percent in month following sale
8 percent in second month following sale 2 percent uncollectible
The company allows a 2 percent cash discount for payments made by customers during the month of the sale. Jul and August sales were $400,000 and $240,000, respectively.
Required: Prepare a schedule of budgeted cash collections from sales for September, October, and November
please show all work
Explanation / Answer
Budgeted Cash Collections :
Month September October November December Janaury February July 32000 August 60000 19200 September 254800 100000 32000 October 203840 80000 25600 November 280280 110000 35200 December 229320 90000 28800 Total 346800 323040 392280 364920 125200 28800Related Questions
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