Eastern Auto Parts Inc. has 30 percent of its sales paid for in cash and 70 percent on credit. All credit accounts are collected in the following month.    Assume the following sales:          January $ 80,000 February   70,000 March   115,000 April   60,000   Sales in December of the prior year were $90,000. Prepare a cash receipts schedule for January through April.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Eastern Auto Parts Inc. has 30 percent of its sales paid for in cash and 70 percent on credit. All credit accounts are collected in the following month.
  
Assume the following sales:
  

     
January $ 80,000
February   70,000
March   115,000
April   60,000
 


Sales in December of the prior year were $90,000.

Prepare a cash receipts schedule for January through April.

 

Eastern Auto Parts Inc.
January
February
March
April
Sales
Cash receipts:
Cash sales
Prior month's credit sales
Total cash receipts
$
77,000 $
83,500 $
98,500
%24
Transcribed Image Text:Eastern Auto Parts Inc. January February March April Sales Cash receipts: Cash sales Prior month's credit sales Total cash receipts $ 77,000 $ 83,500 $ 98,500 %24
Expert Solution
Step 1

Cash budget means expected cash receipts and expected cash payment with opening and closing cash balances. Necessary calculation has been done.

 

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