### Company Budgeted Sales and Cash Collections for Quarter 1#### Sales and Collections Table| | Cash Sales | Credit Sales | Total Sales ||---------|------------|--------------|-------------|| January | $93,000 | ? | ? || February| $100,000 | $260,000 | $360,000 || March | $85,000 | $195,000 | $280,000 |#### Credit Sales Collection Schedule- **Month of Sale**: 50%- **A Month after Sale**: 40%- **Second Month after Sale**: 10%#### Additional Financial Information- **Accounts Receivable Balance on January 1**: $175,000 - $75,000 represents uncollected December sales - $100,000 represents uncollected November sales#### Problem Statement**Question:** If the total cash collected in March was $320,000, then the total January sales must have been:**Answer Choices:**- None of the answers are correct.- $1,278,000- $335,000- $428,000- $126,500Use the above information and formulas for determining total sales to solve the problem.

The cash budget is part of the master budget and it shows estimated cash inflow and cash outflow during a period. The management prepares the cash budget to estimate the expected cash receipts and cash disbursements on the basis of previous experience. Total cash collected in march = ( 50% of March credit sale ) + ( 40% of February credit sales ) + ( 10% of January credit sales )Let January credit sales be, X$ 320,000= ( 50% * $ 195,000) + ( 40% * $ 260,000) + ( 10% * X )$ 320,000 = $ 97,500 + $ 104,000 + 0.10 X0.10 X = 118,500X = 118,500 /0.10= $ 1,185,000So January credit sales = $ 1185,000Total sales of January = Cash sales + Credit sales= $ 93,000 +$ 1185,000= $ 1,278,000Total sales of January = $ 1278,000

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A company's budgeted sales and cash collections for Quarter 1 are listed below: January February March Cash Sales $93,000 $100,000 $85,000 Credit Sales Collections on credit sales are as follows: Month of sale A month after sale Second month after sale www. Answer (Click to select) $260,000 $195,000 Total Sales $360,000 $280,000 50% 40% 10% The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales astur stundarle je 25 Q. If the total cash collected in March was $320,000, then total January sales must have been:

A company's budgeted sales and cash collections for Quarter 1 are listed below: January February March Cash Sales $93,000 $100,000 $85,000 Credit Sales Collections on credit sales are as follows: Month of sale A month after sale Second month after sale www. Answer (Click to select) $260,000 $195,000 Total Sales $360,000 $280,000 50% 40% 10% The accounts receivable balance on January 1 is $175,000, of which $75,000 represents uncollected December sales and $100,000 represents uncollected November sales astur stundarle je 25 Q. If the total cash collected in March was $320,000, then total January sales must have been:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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