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    Cash receipts

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    Cash receipts budget. Prescott Co. has actual sales for January and February and forecasted sales for March, April, May and June as follows:

    January $294,000
    February 315,000
    March 342,000
    April 282,000
    May 366,000
    June 321,000

    Based on past experience, it is estimated that 40% of a month's sales is collected in the month of sale, 50% is collected in the month following the sale, and 9% is collected in the second month following the sale.


    Calculate the estimated cash receipts for March, April, and May.

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    Solution Summary

    This solution assists in determining cash receipts.