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Simpson Glove Company has made the following sales projections for the next six months. All sales...
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March $41,000 June $47,000 April 50,000 July 58,000 May 32,000 August 62,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare a monthly cash receipts schedule for the firm for March through August.
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Expert Solution
Sales on Jan = 41000
Sales on Feb = 39000
| Month | March | April | May | June | July | August |
| Sales for current month | 41000 | 50000 | 32000 | 47000 | 58000 | 62000 |
| Amount collected from current month sales (40%) ----(A) | 16400 | 20000 | 12800 | 18800 | 23200 | 24800 |
| Amount collected from previous month sales (30%) ---- (B) | 11700 | 12300 | 15000 | 9600 | 14100 | 17400 |
| Amount collected from 2 months of previous sale (20%) ------ (C) | 8200 | 7800 | 8200 | 10000 | 6400 | 9400 |
| Total Cash Reciept (A+B+C) | 36,300 | 40,100 | 36,000 | 38,400 | 43,700 | 51,600 |
jeff jeffy answered 2 years agoRelated Solutions
Simpson Glove Company has made the following sales projections for the next six months. All sales...
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