Response to the following problem:
Financial budgets: cash inflows Worthington Company makes cash (20% of total sales), credit card (50% of total sales), and account (30% of total sales) sales. Credit card sales are collected in the month following the sale, net a 3% credit card fee. This means that if the sale is $100, the credit card company's fee is $3, and Worthington receives $97. Account sales are collected as follows: 40% in the first month following the sale, 50% in the second month following the sale, 8% in the third month following the sale, and 2% never collected.
The following table identifies the projected sales for the next year:
WORTHINGTON COMPANY PROJECTED SALES:
|
MONTH
|
SALES
|
MONTH
|
SALES
|
|
January
|
$12,369,348
|
July
|
$21,747,839
|
|
February
|
15,936,293
|
August
|
14,908,534
|
|
March
|
13,294,309
|
September
|
11,984,398
|
|
April
|
19,373,689
|
October
|
18,894,535
|
|
May
|
20,957,566
|
November
|
21,983,545
|
|
June
|
18,874,717
|
December
|
20,408,367
|
Prepare a statement showing the cash expected each month from the collections from these sales.