The sales budget of a company for the fourth quarter of 2009 is as follows:
October November December
Sales $96,000 $72,000 $108,000
Sales are 20% cash, 80% credit.
Cost of goods sold is 70% of total sales.
Collections on credit sales are as follows:
50% in the month of sale
30% in the month following sale
15% in the second month following sale
October 1 inventory is $16,000
Expected sales for January 2007, are $84,000
Payments foe inventory are 70% in the month following purchase and 30% two months following purchase.
Compute the CASH COLLECTIONS for DECEMBER© BrainMass Inc. brainmass.com June 3, 2020, 11:53 pm ad1c9bdddf
Cash collections computations are given for December.