In: Operations Management
MonetteMonette
Corporation has found that
6060?%
of its sales in any given month are credit? sales, while the remainder are cash sales. Of the credit? sales,
MonetteMonette
Corporation has experienced the following collection? pattern:
25% received in the month of the sale |
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50% received in the month after the sale |
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18% received two months after the sale |
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7% of the credit sales are never received |
November sales for last year were
$ 85 comma 000$85,000?,
while December sales were
$ 115 comma 000$115,000.
Projected sales for the next three months are as? follows:
January sales. . . . . . . . . . . . . . . . |
$160,000 |
February sales. . . . . . . . . . . . . . . |
$125,000 |
March sales. . . . . . . . . . . . . . . . . |
$165,000 |
Requirement
Prepare a cash collections budget for the first? quarter, with a column for each month and for the quarter. ?(Round your answers to the nearest whole? dollar.)
Monette Corporation |
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Cash Collections Budget |
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For the Months of January through March |
January |
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Cash sales |
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Collections on credit sales: |
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25% Month of sale |
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50% Month after |
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18% Two months after |
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Total cash collections |
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