Ask Experts Questions for FREE Help !
Ask
    StudentJK's Avatar
    StudentJK Posts: 1, Reputation: 1
    New Member
     
    #1

    May 3, 2009, 05:03 PM
    Cash Collections Budget
    I have been working on this problem for three hours, and for some reason, none of my answers make sense. Could someone please help me find the correct answer?

    The problem reads:

    Cash Sales:

    March $30,000
    June $45,000
    Sept. $37,500


    Credit Sales:

    March $70,000
    June $105,000
    Spet. $87,500

    Refer to the sales budget (printed above). Credit sales are typically collected as follows: 60% in the quarter of the sale, 30% in the quarter after the sale, 7% in the second quarter after the sale, 3% uncollectible. Prepare the cash collections bdget for the third quarter (the quarter ended Sept. 30)


    My answer continues to be $38,100 which doesn't seem correct because cash sales in Sept. were only $37,500. Any help is much appreciated! Thank you
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    May 4, 2009, 12:54 AM

    Can you please show where you got the answer from so someone can tell you where you've gone wrong?

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Cash Budget/Cash Receipts [ 1 Answers ]

1) Rushmore Kitchen Supply has forecast credit sales for the fourth quarter of the year as: March(actual) $75,000 Fourth Quarter - projected April $80,000 May $70,000 June $75,000 Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following...

Cash Collections Budget Problem [ 3 Answers ]

I would REALLY appreciate any help you could give me with this problem: Sales May 60,000 June 70,000 July 80,000 August 100,000 All sales are on credit. Records show that 60 percent of the customers pay during the month of the sale, 20 percent pay the month after the sale, and...

Cash Budget/ Cash Disbursements [ 2 Answers ]

1) Rushmore Kitchen Supply has forecast credit sales for the fourth quarter of the year as: March(actual) $75,000 Fourth Quarter - projected April $80,000 May $70,000 June $75,000 Experience has shown that 30 percent of sales are collected in the month of sale, 60 percent in the following...


View more questions Search