The accounts receivable balance at the end of the previous quarter was $93,750 (

Question

The accounts receivable balance at the end of the previous quarter was $93,750 ($68,250 of which was uncollected December sales).

Compute the sales for November. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Compute the sales for December. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

The following is the sales budget for ABC Company, Inc., for the first quarter of 2013:

Explanation / Answer

The following is the sales budget for ABC Company, Inc., for the first quarter of 2013:

The accounts receivable balance at the end of the previous quarter was $93,750 ($68,250 of which was uncollected December sales).

Compute the sales for November. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

sales for November = (93750-68250)/15%

sales for November = 170000

Compute the sales for December. (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

sales for December = 68250/35%

sales for December = 195000

Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Working

January February March   Sales budget $133,000 $150,000 $165,000

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