ABC Company’s budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The selling price for each unit is $15. Based on past experience, ABC expects that 40% of a month’s sales will be collected in the month of sale, 55% in the following month, and 3% in the second month following the sale. Required: Prepare an analysis of cash receipts from sales for ABC Company for August.
ABC Company’s budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The selling price for each unit is $15. Based on past experience, ABC expects that 40% of a month’s sales will be collected in the month of sale, 55% in the following month, and 3% in the second month following the sale. Required: Prepare an analysis of cash receipts from sales for ABC Company for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
ABC Company’s budgeted sales for June, July, and August are 13,200, 17,200, and 15,200 units respectively. The selling price for each unit is $15. Based on past experience, ABC expects that 40% of a month’s sales will be collected in the month of sale, 55% in the following month, and 3% in the second month following the sale.
Required:
Prepare an analysis of cash receipts from sales for ABC Company for August.
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