Question

Sesnie Corporation has found that 60​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, Sesnie Corporation has experienced the following collection​ pattern: 25% received in the month of the sale 50% received in the month after the sale 18% received two months after the sale 7% of the credit sales are never received November sales for last year were $ 80,000​, while December sales were $ 110,000. Projected sales for the next three months are as​ follows: January sales $145,000 February sales $130,000 March sales $195,000 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.) Sesnie Corporation Cash Collections Budget For the Months of January through March January Cash sales Collections on credit sales: 25% Month of sale 50% Month after 18% Two months after Total cash collections

Answer 1

Solution :

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.