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 $ 38,000 47,000 29,000 44,000 55,000 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. Credit sales Collections: In month of sale One month after sale Two months after sale January February $ 41,000 $ 39,000 Simpson Glove Company Cash Receipts Schedule March April $ 38,000 $ $ 16,920 × $ 13,680 S 10,260 x 6,840 x 30,780 $ 12,690 X 8,460 X Total cash receipts 38,070 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 47,000 $ $ May 29,000 $ 10,440 x $ 7,830 5,220 23,490 $ June 44,000 $ 15,840 × S 11,880 x 7,920 X 35,640 $ July 55,000 $ 19,800 $ 14,850 x 9,900 X 44,550 $ August 59,000✔ 21,240 x 15,930 X 10,620 X 47,790

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 $ 38,000 47,000 29,000 44,000 55,000 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. Credit sales Collections: In month of sale One month after sale Two months after sale January February $ 41,000 $ 39,000 Simpson Glove Company Cash Receipts Schedule March April $ 38,000 $ $ 16,920 × $ 13,680 S 10,260 x 6,840 x 30,780 $ 12,690 X 8,460 X Total cash receipts 38,070 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 47,000 $ $ May 29,000 $ 10,440 x $ 7,830 5,220 23,490 $ June 44,000 $ 15,840 × S 11,880 x 7,920 X 35,640 $ July 55,000 $ 19,800 $ 14,850 x 9,900 X 44,550 $ August 59,000✔ 21,240 x 15,930 X 10,620 X 47,790

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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please explain how you got your figures