Monette 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, Monette Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 14% received two months after the sale 11% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 14% Two months after Total cash collections Monette Corporation Cash Collections Budget For the Months of January through March January February March Quarter November sales for last year were $95,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales..... February sales March sales. ....S $ 170,000 S 135,000 $ 180,000 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.)
Monette 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, Monette Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 14% received two months after the sale 11% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 14% Two months after Total cash collections Monette Corporation Cash Collections Budget For the Months of January through March January February March Quarter November sales for last year were $95,000, while December sales were $125,000. Projected sales for the next three months are as follows: January sales..... February sales March sales. ....S $ 170,000 S 135,000 $ 180,000 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:Monette 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, Monette Corporation has experienced the following collection pattern:
25% received in the month of the sale
50% received in the month after the sale
14% received two months after the sale
11% of the credit sales are never received
Cash sales
Collections on credit sales:
25% Month of sale
50% Month after
14% Two months after
Total cash collections
Monette Corporation
Cash Collections Budget
For the Months of January through March
January February March
Quarter
()
November sales for last year were $95,000, while December sales were $125,000. Projected sales for the next three months are
as follows:
January sales.....
February sales
March sales.
....S
$
S
$
170,000
135,000
180,000
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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