February sales were 60000 and march sales were 70000 in the


For Part A of the question I suggest you look at examples in the electronic textbook to determine how to prepare the schedule. Foundations of Financial Management (Fourteenth Edition)


Ellis Sport Shop projects the following sales:

April - $75,000

May - $95,000

June - $100,000

Seventy percent of Ellis' sales are on credit with 60 percent of receivables collected in the month after the sale and the rest of receivables collected in the second month after the sale. February sales were $60,000 and March sales were $70,000. In the past Ellis' bad debt percentage has been 0 and is expected to continue.

a) Prepare a monthly schedule of cash receipts for April-June.
b) What is the balance of Receivables at the end of June?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: February sales were 60000 and march sales were 70000 in the
Reference No:- TGS0634957

Expected delivery within 24 Hours