MOUNTAINEERS Sales Budget January - February 2011 January February Jan - Feb Tot
ID: 2350639 • Letter: M
Question
MOUNTAINEERSSales Budget
January - February 2011
January February Jan - Feb Total
Cash sales, 100% $660,000 $440,000 $1,100,000
Assume that Mountaineers' sales are 20% cash and 80% on credit. the company's collection history indicates that credit sales are collected as follows:
30% in the month of the sale
60% in the month after the sale
7% 2 months after the sale
3% never collected
November sales totaled $386,000 and December sales were $399,500
Prepare a schedule for the budgeted cash collections for January and February.
Explanation / Answer
Slaes budget
January-February 2011
Particulars
January $
February $
Slaes budget
January-February 2011
Particulars
January $
February $
Cash collections (30%x660,000+60%x399,500+7%x386,000) 464,720 (30%x440,000+60%660,000+7%x399,500) 555,965Related Questions
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