In: Finance
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March | $52,000 | June | $58,000 | |
April | 61,000 | July | 69,000 | |
May | 43,000 | August | 73,000 | |
Sales in January and February were $41,000 and $39,000,
respectively. Experience has shown that of total sales receipts 10
percent are uncollectible, 35 percent are collected in the month of
sale, 25 percent are collected in the following month, and 30
percent are collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
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