Please do not give solution in image format thanku The LaGrange Corporation had thefollowing budgeted sales for the first halfof the current year:JanuaryFebruaryMarchAprilMayJuneCash Sales$50,000$55,000$43,000$38,000$48,000$80,000Credit Sales$150,000$170,000$130,000$123,000$200,000$170,000The company is in the process of preparinga cash budget and must determine theexpected cash collections by month. To thisend, the following information has beenassembled: Collections on sales:50% in month of sale40% in month following sale10% in second month following saleThe accounts receivable balance onJanuary 1 of the current year was $65,000.Required: Prepare expected cash.collections budget for January, February,March, April and May.

Calculation of the Credit sales Received Jan FebMarch April May Opening 130000*40%130000*10%Jan…

Answered: Required: Prepare expected cash…

Business

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Required: Prepare expected cash collections budget for January, February, March, April and May.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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Question

Please do not give solution in image format thanku

The LaGrange Corporation had the
following budgeted sales for the first half
of the current year:
January
February
March
April
May
June
Cash Sales
$50,000
$55,000
$43,000
$38,000
$48,000
$80,000
Credit Sales
$150,000
$170,000
$130,000
$123,000
$200,000
$170,000
The company is in the process of preparing
a cash budget and must determine the
expected cash collections by month. To this
end, the following information has been
assembled: Collections on sales:
50% in month of sale
40% in month following sale
10% in second month following sale
The accounts receivable balance on
January 1 of the current year was $65,000.
Required: Prepare expected cash.
collections budget for January, February,
March, April and May.

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