How to setup a schedule of cash collection?
I am trying to figure out how do I work the following problem for my final exam coming up please help. Can you also explain to me how to setup a schedule of cash collection? :(
Problem:
July
Expected sales in units 2,000
Selling price per unit $ 50
Total sales $100,000
August
Expected sales in units 3,000
Selling price per unit $ 50
Total sales $150,000
However, the actual sales were not quite as high as was anticipated. The actual sales were:
July
Actual sales in units 1,000
Selling price per unit $ 50
Total sales $ 50,000
August
Actual sales in units 2,500
Selling price per unit $ 50
Total sales $125,000
Create a schedule of cash collections for the budgeted sales for July and August. Assume that 80% of sales are collected in the month of sale and the remaining 20% of sales are collected the following month.
Thanking you in advance.