Garnet Service anticipates the following sales revenue over a five-month period

Question

Garnet Service anticipates the following sales revenue over a five-month period R (Click the icon to view the sales data.) The company's sales are 40% cash and 60% credit. Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in tot Garnet Service Cash Collections Budget For the Months of January through March January February March Quarter Cash sales 6,240 5,200 5,600 17,040 Collection of credit sales: 25% Month of sale 50% Month after 20% Two months after Total cash collections Data Table November December January February March Sales revenue $ 16,300 $ 10,200 S 15,600 S 13,000 14,000 PrintDone Ent

Explanation / Answer

Garnet Service Cash Collections Budget For the Months of January through March January February March Quarter Cash sales $                                            6,240 $                                            5,200 $                                            5,600 $ 17,040 Collection of credit sales 25% Month of sale $15,600*60%*25% = $2,340 $13,000*60%*25% = $1,950 $14,000*60%*25% = $2,100 $     6,390 50% month after $10,200*60%*50% = $3,060 $15,600*60%*50% = $4,680 $13,000*60%*50% = $3,900 $ 11,640 20% two months after $16,300*60%*20% = $1,956 $10,200*60%*20% = $1,224 $15,600*60%*20% = $1,872 $     5,052 Total cash collection $                                          13,596 $                                          13,054 $                                          13,472 $ 40,122

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