SJU, a clothing wholesaler, was preparing its sales budget for the first quarter
ID: 2568298 • Letter: S
Question
SJU, a clothing wholesaler, was preparing its sales budget for the first quarter of 20x8. Actual and forecast sales are as follows Budgeted sales Month November (actual) $700,000 December (actual) $900,000 January February March $810,000 $990,000 $940,000 Fifty-five percent of sales are cash. The remaining 45% is collected in the following month. Accounts receivable at the beginning of 20x8 are $405,000 (45% of December sales of $900,000) Use this information to answer the questions that follow. This question will require the use of Excel to prepare a schedule of sales and cash collections. Leave this area blank. Proceed to the next block to respond to the first question What is the amount of cash that will be collected in January, 20x8? Round your answer to the nearest whole dollar. Do not enter dollar signs or commas Answer: 364500 CheckExplanation / Answer
Amount of cash collected in January 2018 =
55% of January sales = 55%*810,000. = 445,500
45% of Dec month sales =45%*900,000 =405,000
Total cash collected= 445500+405000 =$850,500
2. CasCash collecTed in march 2018
45% of Feb month sales = 45% * 990,000 = 445,500
55% of March sales. = 55% * 940,000 = 517,000
Total sash collected = $962,500
3. Accountsouts receieivanenable in march 2018
45% sales of march month = 45%*940,000 =$423,000
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