ACC 211 Section 301 Klayton Kertz 4/9/18 5:11 PM Homework: Chapter 9 The Master

Question

ACC 211 Section 301 Klayton Kertz 4/9/18 5:11 PM Homework: Chapter 9 The Master Budget Save Score: 0 of 2 pts 4 of 7 (4 complete) HW Score: 40%, 4 of 10 pts ??9-27A (similar to) Question Help Alderman Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Alderman Corporation has experienced the following collection pattern: November sales for last year were $80,000, while December sales were S120,000. Projected sales for the next three months are as follows: $ 160,000 $ 135,000 $ 195,000 January sales 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 996 of the credit sales are never received February sales March sales Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter (Round your answers to the nearest whole dollar.) Alderman Corporation Cash Collections Budget For the Months of January through March January Cash sales 64,000 Collections on credit sales: 25% Month of sale 50% Month after 16% Two months after Total cash collections

Explanation / Answer

Cash collection schedule :

January February March Cash sales 64000 54000 78000 Collections on credit sales 25% of month sales 24000 20250 29250 50% month after 36000 48000 40500 16% two month after 7680 11520 15360 Total cash collection 131680 133770 163110

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