I need to prepare a cash receipt schedule first how do I do this?
Asked Dec 16, 2011, 11:25 AM
I need to prepare a cash receipt schedule first how do I do this? The question is Lansing Auto Parts,Inc has projected sales of $25,000 in Oct, $35,000 in Nov and $30,000 in Dec. Of the company sales, 20% are paid for by cash, and 80% are sold on credit.The credit sales are collected one month after sale. Determine collections for Nov and Dec. Also assume that the company's cash payment for Nov and Dec are $30,400 and $29,800, respectively. The beginning cash balance in Nov is $6,000, which is the desired minimum balance. Prepare cash budget with borrowing needed or repayment for Nov and Dec.