Calculate the cash collections from sales for each month


The following is the sales budget for Shleifer, Inc., for the first quarter of 2013:

                          January              February             March

Sales budget    $205,000             $225,000            $248,000

Credit sales are collected as follows:

75 percent in the month of the sale.

20 percent in the month after the sale.

5 percent in the second month after the sale.

The accounts receivable balance at the end of the previous quarter was $89,000 ($59,000 of which was uncollected December sales).

a. Calculate the sales for November. (Do not round intermediate calculations. Enter your answer in whole dollars (e.g., 32).)

November sales $

b. Calculate the sales for December. (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)

December sales $

c. Calculate the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).) 


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Accounting Basics: Calculate the cash collections from sales for each month
Reference No:- TGS01359867

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