show all work Home Company will open a new store on January 1, 2000. Based on ex

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Home Company will open a new store on January 1, 2000. Based on experience from its other retail outlets, Home Company is making the following sales projections January February March April Cash Sales $60,000 $30,000 $40,000 $40,000 $40,000 $50,000 $60,000 $80,000 Home estimates that 70% of the sales on account will be collected in the month following the month of sale, with the balance collected in the second month following sale 1. In a cash budget for the month of April, the total cash receipts will be 2. The balance in accounts receivable on January 31, 2000 will be 3. The March 31, 2000, balance in accounts receivable will be .

Explanation / Answer

1 Total cash receipts for April = 40000+(50000*30%)+(60000*70%)= 97000 2 Balance in accounts receivable on jan31,2020 = 40000 3 Balance in accounts receivable on Mar 31,2020 =(50000*30%)+60000= 75000

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