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Abbeysgg
May 10, 2009, 11:02 PM
90% of Sales are on credit with 60% of AR collected in the month after the sale and rest collected in the second month after the sale. Feb sales were $60,000 with March at $70,000. April at $75,000, May at $95,000 and June at $110,000. These are the only figures I know are correct so far. Bad debt % is 0. What are cash receipts for April-June. and what is the balance of Receivables at the end of June?
:confused:
ROLCAM
May 11, 2009, 06:24 AM
APR MAY JUN

SALES 75,000 95,000 110,000

CREDIT SALES @<hidden> .9 67,500 85,500 99,000
CASH SALES @<hidden> .1 7,500 9,500 11,000

TOTAL SALES 75,000 95,000 110,000

COLLECTIONS

SAME MONTH @<hidden> .6 40,500 51,300 59,400
MONTH AFTER @<hidden> .4 25,200 27,000 34,200
CASH SALES @<hidden> .1 7,500 9,500 11,000

TOTAL COLLECTIONS 73,200 87,800 104,600

CASH RECEIPTS APR - JUN 265,600

Balance of Receivables at the end of June 39,600