Question:
1. Lash Corporation has the following sales budget for the last half of 2000:
(Assume all credit sales)
July $100,000 October $90,000
August 80,000 November 100,000
September 110,000 December 94,000
Historically, the cash collection of sales has been as follows:
65 percent of sales collected in month of sale,
25 percent of sales collected in month following sale, and
10 percent of sales collected in second month following sale.
1.) What are the expected cash collections in September?
2.) What is accounts receivable at September 30?
3.) What are the expected cash collections in November?
4.) What are the expected cash collections in December?
5.) What is accounts Receivable at December 31?