Scottsdale Co. has actual sales for July and August and forecast sales for Septe
ID: 2527299 • Letter: S
Question
Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows: Actual: July $ 97,500 August 105,400 Forecast: September 114,500 October 93,100 November 121,500 December 108,000 Based on past experience, it is estimated that 23% of a month’s sales are collected in the month of sale, 54% are collected in the month following the sale, and 11% are collected in the second month following the sale.
Required:
Calculate the estimated cash receipts for September, October, and November.
12 00 points Scoltsdale Co.has ctual sales for July and August and farecast sales for September, October, November, and December as follows: Actual uly August $97,500 105,400 Forecast September 14,500 October November 93,100 121,500 Based on past experience, t is estimated that 23% o a month's sales are colected in e month of sale, 54% are collected in the month follo in the sa e an % are o lecte second month follow thes e. Required: Calculate the estimated cash receipts for September, Octaber, and November. Oclober enExplanation / Answer
Cash Collection Schedule Explanation to Solution September October November September October November Month's Sales Collection(23%) 26335 21413 27945 (114500*23%) (93100*23%) (121500*23%) First Month SalesCollections:(54%) For August Sales 56916 (105400*54%) For September Sales 61830 (114500*54%) For October Sales 50274 (93100*54%) Second Month SalesCollections:(11%) For July Sales 10725 (97500*11%) For August Sales 11594 (105400*11%) For September Sales 12595 (114500*11%) Total cash collected 93976 94837 90814 Total Total Total Working Note: July August September October November December Sales 97500 105400 114500 93100 121500 108000 Collection Pattern: In the Month 23% In First Month Following Sales 54% In Second Month Following Sales 11% Uncollectiable 12% (Assumed) 100%
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