Question

16. Camen Company projects the following​ sales:

January

February

March

Cash sales (45%)

$12,150

$13,500

$14,400

Sales on account (55%)

14,850

16,500

17,600

Total sales

$27,000

$30,000

$32,000

Camen collects sales on account in the month after the sale. The Accounts Receivable balance on January 1 is $13,100​, which represents December​'s sales on account. Camen projects the following cash receipts from​ customers:

January

February

March

Cash receipts from cash sales

$12,150

$13,500

$14,400

Cash receipts from sales on account

13,100

14,850

16,500

Total cash receipts from customers

$25,250

$28,350

30,900

Recalculate cash receipts from customers if total sales remain the same but cash sales are only 25​% of the total.Begin by computing the cash sales and sales on account for each month if cash sales are only 25​% of the total.

	January	February	March
Cash sales (25%)
Sales on account (75%)
Total sales	$27,000	$30,000	$32,000

​Now, recalculate cash receipts from customers for each month if cash sales are only 25​%

of the total.

	January	February	March
Cash receipts from cash sales
Cash receipts from sales on account
Total cash receipts from customers

Enter any number in the edit fields and then continue to the next question.

Answer 1

a.
	Calculation of Cash sales and Sales on Account
		January	February	March
Cash Sales (25%)		$               6,750	$         7,500	$         8,000
Sales on account (75%)		$             20,250	$       22,500	$       24,000
Total Sales		$             27,000	$       30,000	$       32,000
b.
	Cash receipts from Customer
			January	February	March
	Cash receipts from cash sales		$         6,750	$         7,500	$         8,000
	Cash receipts from sales on account		$       13,100	$       20,250	$       22,500
	Total cash receipts from customers		$       19,850	$       27,750	$       30,500