preparing schedule of cash receipts sensitivity analysis Trevor has no kis in be

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preparing schedule of cash receipts sensitivity analysis

Trevor has no kis in begining inventory, Round amounts to two decimal places E22-27 Preparing a financial budget-schedule of cash receipts, sensitivity Learning Obje analysis Armand Company projects the following sales for the fist three months of the year: . $10,600 in January: $12,300 in February; and $12,900 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. 1. Feb. total cash feb,.tola Requirements . Prepare a schedtule of cash receipts for Amand for January Pebruary, and March. Prepare a schedule of cash receipts for What is the balance in Accounts Recivable on March 312 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

Explanation / Answer

Ans 1 January February March Total Sales 10600 12300 12900 35800 Cash sale @60% 6360 7380 7740 21480 Balance 4240 4920 5160 14320 50% of balance same month 2120 2460 2580 7160 50% of balance next month 2120 2460 4580 Accounts payable on 31 March $5160-2580=$2580 Ans 2 January February March Total Sales 10600 12300 12900 35800 60% in same month 6360 7380 7740 21480 30% of balance next month 3180 3690 6870 10% of balance second month 1060 1060 Accounts payable on 31 March February due (12300-7380-3690) 1230 March 12900*.4 5160 Total 6390

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