Monette Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Monette Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 9% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 16% Two months after Total cash collections Monette Corporation Cash Collections Budget For the Months of January through March January November sales for last year were $100,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales. February sales.. March sales... $ 160,000 .$ 130,000 . $ 190,000 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.)
Monette Corporation has found that 70% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Monette Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 9% of the credit sales are never received Cash sales Collections on credit sales: 25% Month of sale 50% Month after 16% Two months after Total cash collections Monette Corporation Cash Collections Budget For the Months of January through March January November sales for last year were $100,000, while December sales were $115,000. Projected sales for the next three months are as follows: January sales. February sales.. March sales... $ 160,000 .$ 130,000 . $ 190,000 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.)
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 1P
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