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    Emily32's Avatar
    Emily32 Posts: 1, Reputation: 1
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    #1

    Jul 23, 2008, 10:17 AM
    Cash Budget
    The following is the sales budget for the Smithe and Wreston Company for the first quarter of 20X1

    January February March
    Sales Budget $90,000 $100,000 $120,000

    The aging of credit sales is
    30% collected in the month of sale
    40% collected in the month after sale

    The accounts receivable balance at the end of the previous quarter is $36,000; $30,000 0f that amount is uncollected December sales.

    a) Compute the sales for December
    b) Compute the cash collections from sales for each month from January through March
    ranakhallaf's Avatar
    ranakhallaf Posts: 1, Reputation: 1
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    #2

    Jan 4, 2011, 08:10 AM
    No
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