Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $40,000 June 49,000 July 31,000 August Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale. Sales $46,000 57,000 61,000 Prepare a monthly cash receipts schedule for the firm for March through August. Simpson Glove Company Cash Receipts Schedule February 39000 ✔ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier. Total cash receipts $ January 41000 ✓ $ $ March 40000 ♥ $ 20000 ✓ 2000 16000 O 38000 x $ April 49000 24500 1960 19600 May ✔ $ 31000 00000 46550 X $ 15500 1240 12400 29450 0 0 0 0 June $ 46000 ✔ $ S 23000 1840 18400 43700 Return to question 0 0 0 0 0 July 57000 28500 2280 22800 $ 54150 O $ $
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $40,000 June 49,000 July 31,000 August Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are collected two months after sale. Sales $46,000 57,000 61,000 Prepare a monthly cash receipts schedule for the firm for March through August. Simpson Glove Company Cash Receipts Schedule February 39000 ✔ $ Collections of current sales Collections of prior month's sales Collections of sales 2 months earlier. Total cash receipts $ January 41000 ✓ $ $ March 40000 ♥ $ 20000 ✓ 2000 16000 O 38000 x $ April 49000 24500 1960 19600 May ✔ $ 31000 00000 46550 X $ 15500 1240 12400 29450 0 0 0 0 June $ 46000 ✔ $ S 23000 1840 18400 43700 Return to question 0 0 0 0 0 July 57000 28500 2280 22800 $ 54150 O $ $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
Marchi
April
May
$40,000 June
49,000 July
31,000 August
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 5 percent
are uncollectible, 50 percent are collected in the month of sale, 40 percent are collected in the following month, and 5 percent are
collected two months after sale.
Sales
$46,000
57,000
61,000
Prepare a monthly cash receipts schedule for the firm for March through August.
Simpson Glove Company
Cash Receipts Schedule
February
39000
Collections of current sales.
Collections of prior month's sales
Collections of sales 2 months earlier
Total cash receipts
$
January
41000
$
March
40000✔ $
20000
2000
16000
38000
0 0 0 0 0
$
May
June
April
49000 ✓ $31600✔ $ 46000 ✓ $
24500
1960
19600
46550
* * * * *
15500 ✔
1240
12400 x
> O
$ 29450
23000
0 0 0 0 0
1840 x
Return to question
18400 x
July
57000
28500
2280
22800
0 0 0 0 0
43700 * $ 54150 x
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