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Samson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson 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 Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections Samson Corporation Cash Collections Budget For the Months of January through March January November sales for last year were $85,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales..... February sales .... March sales...... $ 145,000 $ 115,000 $ 170,000 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.)

Samson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson 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 Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections Samson Corporation Cash Collections Budget For the Months of January through March January November sales for last year were $85,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales..... February sales .... March sales...... $ 145,000 $ 115,000 $ 170,000 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.)

FINANCIAL ACCOUNTING
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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Samson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson 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 Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections Samson Corporation Cash Collections Budget For the Months of January through March January I November sales for last year were $85,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales... February sales ... March sales. . . $ 145,000 $ 115,000 $ 170,000 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.)
Transcribed Image Text:Samson Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson 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 Cash sales Collections on credit sales: 20% Month of sale 40% Month after 25% Two months after Total cash collections Samson Corporation Cash Collections Budget For the Months of January through March January I November sales for last year were $85,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales... February sales ... March sales. . . $ 145,000 $ 115,000 $ 170,000 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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