14. Cain Company projects the following sales EEB (Click on the icon to view the

Question

14. Cain Company projects the following sales EEB (Click on the icon to view the projected sales.) Cain collects sales on account in the month after the sale. The Accounts Receivable balance on January 1 is $12,100, which represents December's sales on account. Cain projects the following cash receipts from customers EEB (Click on the icon to view the cash receipts from customers.) Recalculate cash receipts from customers if total sales remain the same but cash sales are only 35% of the total Begin by computing the cash sales and sales on account for each month if cash sales are only 35% of the total January Februa March Cash sales (35%) Sales on account (65%) Total sales Now, recalculate cash receipts from customers for each month if cash sales are only 35% of the total 33,000 $ 27,000 $ 22,000 January February March Cash receipts from cash sales Cash receipts from sales on account Total cash receipts from customers January February March January February March 1,000 11,000 22,000 Cash receipts from cash sales Cash sales (50%) Sales on account (50%) Total sales 16,500 $ 16,500 33,000 S 13,500 S 13,500 27,000 S 16,500 $ 12,100 28,600 $ 13,500 $ 16,500 30,000 $ 11,000 13,500 24,500 Cash receipts from sales on account Total cash receipts from customers

Explanation / Answer

Particulars January February March' Cash sales (35%) 11550 9450 7700 Credit sales (65%) 21450 17550 14300 Total sales 33000 27000 22000 Particulars January February March Cash reciept from cash sales 11550 9450 7700 Cash reciepts from sale on account 12100 21450 17550 Total cash reciepts from customers 23650 30900 25250 Working : cash sales January=33000*0.35=$11550 February=27000*0.35=$9450 March=22000*0.35=$7700

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