Budgeted sales revenue for the coming five months is as follows: Month Sales Revenue August September October $170,000 $190,000 $110,000 $165,000 $100,000 You estimate that you will collect 30% of sales revenue in the month of sale, 40% in the following month, 25% two months after the sale, and the remaining 5% three months after the sale. November December Compute budgeted cash inflows for November and December (Hint: pay attention to the timing, e.g. "40% is collected in the following month" means 40% of August revenue is collected in September, i.e., cash receipts (inflows) for September include 40% of previous month's sales revenue.) November = $ December = $

Budgeted sales revenue for the coming five months is as follows: Month Sales Revenue August September October $170,000 $190,000 $110,000 $165,000 $100,000 You estimate that you will collect 30% of sales revenue in the month of sale, 40% in the following month, 25% two months after the sale, and the remaining 5% three months after the sale. November December Compute budgeted cash inflows for November and December (Hint: pay attention to the timing, e.g. "40% is collected in the following month" means 40% of August revenue is collected in September, i.e., cash receipts (inflows) for September include 40% of previous month's sales revenue.) November = $ December = $

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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