(%) E9-27A (similar to Question Help Fielding Corporation has found that 70% of

Question

(%) E9-27A (similar to Question Help Fielding Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Fielding Corporation has experienced the following collection pattern November sales for last year were $85,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales .. 20% received in the month of the sale 40% received in the month after the sale 24% received two months after the sale 16% of the credit sales are never received $130,000 March sales $ 175,000 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.) Fielding Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 20% Month of sale 40% Month after 24% Two months after Total cash collections

Explanation / Answer

January February March Quarter Cash sales 49500 39000 52500 141000 Credit sales: 20% month of sale 23100 18200 24500 65800 40% month after 35000 46200 36400 117600 24% two months after 14280 21000 27720 63000 Total cash collections 121880 124400 141120 387400

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