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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
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