Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August Credit sales Collections: $ 53,000 62,000 44,000 59,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. 70,000 74,000 Total cash receipts In month of sale One month after sale Two months after sale January February Simpson Glove Company Cash Receipts Schedule April March May June July August
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May June July August Credit sales Collections: $ 53,000 62,000 44,000 59,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August. 70,000 74,000 Total cash receipts In month of sale One month after sale Two months after sale January February Simpson Glove Company Cash Receipts Schedule April March May June July August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Vikrambhai
Transcribed Image Text:Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
April
May
June
July
August
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent
are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are
collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Credit sales
Collections:
In month of sale
$ 53,000
62,000
44,000
59,000
70,000
74,000
One month after sale
Two months after sale
Total cash receipts
January February
Simpson Glove Company
Cash Receipts Schedule
April
March
May
June
July
August
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