The following is the sales budget for Shleifer, Inc., for the first quarter of 2

Question

The following is the sales budget for Shleifer, Inc., for the first quarter of 2016 Sales budget $196,000 $216,000 $239,000 Credit sales are collected as follows 55 percent in the month of the sale. 20 percent in the month after the sale. 25 percent in the second month after the sale. The accounts receivable balance at the end of the previous quarter was $80,000 ($50,000 of which uncollected December sales). a. Calculate the sales for November. (Do not round intermediate calculations and round your answer to the nearest whole number, o.g., 32.) ovember sales b. Calculate the sales for December. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate the cash collections from sales for each month from January through March. (Do not round calculations and round your answers to 2 decimal places, e.g., 32.16.) February March

Explanation / Answer

a. November Sales = $ 30,000 / 25% = $ 120,000.

b. December sales = $ 50,000 / 45% = $ 111,111.11

c.

Schedule of Cash Collections:

$ January 160,022.22 February 185,777.78 March 223,650 Quarter $ 569,450

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