FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be 50%
of total sales, and account sales will be 30% of total sales. Credit card sales are collected in the month
following the sale, net a 3% credit card fee. This means that if the sale is $100, the
credit card company's fee is $3, and Worthington receives $97. Account sales
will be collected as follows: 40% in the first month following the sale, 50% in the second month
following the sale, 8% in the third month following the sale, and 2% never collected.
The following table identifed the projected sales for the first year of operations:
Month
Sales
Month
January $12,369,348 July
Sales
$21,747,839
February 15,936,293 August
14,908,534
March
13,294,309 September
11,984,398
April
19,373,689 October
18,894,535
May
20,957,566 November 21,983,545
June
18,874,717 December 20,408,367
Complete the following statement showing the cash expected each month from the collections of
these sales.
Round all calculations to the nearest whole dollar amount.
Month
January $
February $
March $
April $
May $
June $
July $
August $
September $
October $
November $
December $
Cash Sales Credit Card Sales Account Sales Total Cash Collections
$
$
"A
$
IA
$
$
LA
$
$
$
$
6A
$
$
$
+A
$
+A
LA
LA
$
+A
$
LA
$
+A
$
$
$
A
LA
A
LA
A
LA
LA
$
$
+A
$
LA
$
LA
$
$
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