E9-27A (similar to) Question Help Samson Corporation has found that 60% o its sa

Question

E9-27A (similar to) Question Help Samson Corporation has found that 60% o its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson Corporation has experienced the following collection pattern: 80,000, while December sales were $110,000. Pro ected sales or the next three November sales months are as follows: or last year were 145,000 120,000 175,000 January sales 25% received in the month of the sale 50% received in the month after the sale 15% received two months after the sale 10% of the credit sales are never received February sales March sales Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. Round your answers to the nearest whole dollar.) Samson Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 25% Month of sale 50% Month after 15% Two months after Total cash collections

Explanation / Answer

CASH COLLECTION BUDGET JANUARY FEBUARY MARCH TOTAL Sales 145000 120000 175000 440000 Cash Sales (40% of total sales) 58000 48000 70000 176000 Credit Sales (60% of total sales) 87000 72000 105000 264000 Cash collections: Cash sales 58000 48000 70000 176000 Collection of credit sales 25% of month of sale 21750 18000 26250 66000 50% month after 43500 36000 79500 15% two month after 13050 13050 Total cash collections 79750 109500 145300 334550

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.