Victors expects total sales of $702,000 for January and $348,000 for February. November sales totaled $397,000 and December sales were $403,000. The following schedule of cash receipts for January and February was prepared based upon the collection history given: Now assume that Victors's sales are collected as follows: 60% in the month of the sale 20% in the month after the sale 16% two months after the sale 4% never collected Prepare a revised schedule of cash receipts for January and February
Victors expects total sales of $702,000 for January and $348,000 for February. November sales totaled $397,000 and December sales were $403,000. The following schedule of cash receipts for January and February was prepared based upon the collection history given: Now assume that Victors's sales are collected as follows: 60% in the month of the sale 20% in the month after the sale 16% two months after the sale 4% never collected Prepare a revised schedule of cash receipts for January and February
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Victors expects total sales of $702,000 for January and $348,000 for February. November sales totaled $397,000 and December sales were $403,000. The following schedule of cash receipts for January and February was prepared based upon the collection history given:
Now assume that Victors's sales are collected as follows:
60% in the month of the sale
20% in the month after the sale
16% two months after the sale
4% never collected
Prepare a revised schedule of cash receipts for January and February
Transcribed Image Text:(If an input field is not used in the table leave the input field empty; do not enter a zero.)
Cash Receipts from Customers
January
February
Total sales
January
February
Cash Receipts from Customers:
Nov.-Credit sales, collection of Nov. sales in Jan.
Dec.-Credit sales, collection of Dec. sales in Jan.
Dec.-Credit sales, collection of Dec. sales in Feb.
Jan.-Credit sales, collection of Jan. sales in Jan.
Jan.-Credit sales, collection of Jan. sales in Feb.
Feb.-Credit sales, collection of Feb. sales in Feb.
Total cash receipts from customers
Enter any number in tho odit fiolds and thon click Chock Anouor
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giv
50% in the month of the sale
Cash Receipts from Customers
40% in the month after the sale
January
February
9% two months after the sale
Total sales
24
702,000 $
348,000
1% never collected
January
February
Print
Done
Cash Receipts from Customers:
Nov.-Credit sales, collection of Nov. sales in Jan.
24
35,730
Dec.-Credit sales, collection of Dec. sales in Jan.
161,200
Dec.-Credit sales, collection of Dec. sales in Feb.
36,270
Jan.-Credit sales, collection of Jan. sales in Jan.
351,000
Jan.-Credit sales, collection of Jan. sales in Feb.
280,800
Feb.-Credit sales, collection of Feb. sales in Feb.
174,000
24
547,930 S
491,070
Total cash receipts from customers
Print
Done
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