Cash Receipts Budget and Accounts Receivable Aging ScheduleShalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales:Quarter 1$4,750,000Quarter 26,000,000Quarter 32,890,000Quarter 48,530,000In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent arecollected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected.Total sales for the third quarter of the current year are $5,250,000 and for the fourth quarter of the current year are $7,360,000. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from creditsales. If an amount is zero, enter "0".Shalimar CompanyCash Receipts BudgetFor the Coming YearQuarter 1 Quarter 2Quarter 3 Quarter 4Cash salesReceived on account from:Quarter 3, current yearQuarter 4, current yearQuarter 1, next yearQuarter 2, next yearQuarter 3, next yearQuarter 4, next yearTotal cash receipts3. What if the recession led Shalimar's top management to assume that in the next year 10 percent of credit sales would never be collected? Theexpected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received ineach quarter? Construct a revised cash budget using the new assumption.Shalimar Company

The cash collection budget is prepared to record the cash receipts from cash sales, customers during…

Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,750,000 Quarter 2 Quarter 3 Quarter 4 6,000,000 2,890,000 8,530,000 In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,250,000 and for the fourth quarter of the current year are $7,360,000.

Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,750,000 Quarter 2 Quarter 3 Quarter 4 6,000,000 2,890,000 8,530,000 In Shalimar's experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,250,000 and for the fourth quarter of the current year are $7,360,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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