Sweeney Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Sweeney Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 24% received two months after the sale 1% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 24% Two months after Total cash collections November sales for last year were $105,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales.. February sales March sales. $ $ $ 145,000 115,000 165,000 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.)
Sweeney Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Sweeney Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 24% received two months after the sale 1% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 24% Two months after Total cash collections November sales for last year were $105,000, while December sales were $110,000. Projected sales for the next three months are as follows: January sales.. February sales March sales. $ $ $ 145,000 115,000 165,000 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:Sweeney Corporation has found that 60% of its sales in any given month are
credit sales, while the remainder are cash sales. Of the credit sales, Sweeney
Corporation has experienced the following collection pattern:
25% received in the month of the sale
50% received in the month after the sale
24% received two months after the sale
1% of the credit sales are never received
Cash sales
Collections on credit sales:
25% Month of sale
50% Month after
24% Two months after
Total cash collections
MI
C
November sales for last year were $105,000, 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
165,000
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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