Monachino 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, Monachino Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 22% received two months after the sale 18% of the credit sales are never received November sales for last year were $110,000, while December sales were $120,000. Projected sales for the next three months are as follows: January sales. February sales March sales... $ $ $ 150,000 125,000 175,000 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)
Monachino 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, Monachino Corporation has experienced the following collection pattern: 20% received in the month of the sale 40% received in the month after the sale 22% received two months after the sale 18% of the credit sales are never received November sales for last year were $110,000, while December sales were $120,000. Projected sales for the next three months are as follows: January sales. February sales March sales... $ $ $ 150,000 125,000 175,000 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)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Cash sales
Collections on credit sales:
20% Month of sale
40% Month after
22% Two months after
Total cash collections
Monachino Corporation
Cash Collections Budget
For the Months of January through March
January
Transcribed Image Text:Monachino 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, Monachino
Corporation has experienced the following collection pattern:
20% received in the month of the sale
40% received in the month after the sale
22% received two months after the sale
18% of the credit sales are never received
November sales for last year were $110,000, while December sales were
$120,000. Projected sales for the next three months are as follows:
January sales..
February sales
March sales..
$
$
$
150,000
125,000
175,000
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.)
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