The following is the sales budget for Trickle, Inc., for the ?rst quarter of 200
ID: 2681260 • Letter: T
Question
The following is the sales budget for Trickle, Inc., for the ?rst quarter of 2009:January February March
Sales budget $235,000 $260,000 $295,000
Credit sales are collected as follows:
65 percent in the month of the sale
20 percent in the month after the sale
15 percent in the second month after the sale
The accounts receivable balance at the end of the previous quarter was $173,000
($136,000 of which was uncollected December sales).
Compute the sales for November and for December and compute the cash collections from sales for each month from January through March.
Explanation / Answer
sales for November=(173000-136000)/.15= 246667 and for December= 136000/.35= 388571 collections from sales for January= 152750+77714.2+37000= $267464.2 collections from sales for February= 169000+47000+58285.65= $274285.65 collections from sales for March= 191750+52000+35250= $ 279000
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