Kerwin Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Kerwin Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 25% received two months after the sale 15% of the credit sales are never received C November sales for last year were $110,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales. February sales March sales.. Requirement $ 145,000 $ 125,000 $ 175,000 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.) Cash sales Collections on credit sales: 20% Month of sale Cash Collections Budget For the Months of January through March January February 58,000 17,400 40% Month after 27,600 16,500 25% Two months after $ 119,500 Total cash collections

Kerwin Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Kerwin Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 25% received two months after the sale 15% of the credit sales are never received C November sales for last year were $110,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales. February sales March sales.. Requirement $ 145,000 $ 125,000 $ 175,000 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.) Cash sales Collections on credit sales: 20% Month of sale Cash Collections Budget For the Months of January through March January February 58,000 17,400 40% Month after 27,600 16,500 25% Two months after $ 119,500 Total cash collections

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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