Bentfield Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Bentfield Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 15% received two months after the sale 10% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 15% Two months after Total cash collections November sales for last year were $110,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales....... February sales March sales... $ 160,000 $ 130,000 170,000 Bentfield Corporation Cash Collections Budget For the Months of January through March January . $ 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.)
Bentfield Corporation has found that 80% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Bentfield Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 15% received two months after the sale 10% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 15% Two months after Total cash collections November sales for last year were $110,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales....... February sales March sales... $ 160,000 $ 130,000 170,000 Bentfield Corporation Cash Collections Budget For the Months of January through March January . $ 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Bentfield Corporation has found that 80% of its sales in
any given month are credit sales, while the remainder
are cash sales. Of the credit sales, Bentfield
Corporation has experienced the following
collection pattern:
25% received in the month of the sale
50% received in the month after the sale
15% received two months after the sale
10% of the credit sales are never received
Cash sales
Collections on credit sales:
25% Month of sale
50% Month after
15% Two months after
Total cash collections
November sales for last year were $110,000, while December sales were $125,000. Projected sales for the next three months are as follows:
January sales.
February sales
March sales.
$ 160,000
$
130,000
$
170,000
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.)
Bentfield Corporation
Cash Collections Budget
For the Months of January through March
January
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