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    Schedule of Cash Collections

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    Sales budget for the first month of operations shows $468,311 of total sales for the month. The expected cash collections are as follows:

    20% of its merchandise is sold to cash customers
    80% will be sold on account
    Of the 80% sold on account, 33% is expected to be collected during rhe month of sale and the remaining 67% will be collected the month following the sale.

    Based on this, the Schedule of Cash Collections for the first month of operations should show an estimate of $______ for TOTAL CASH collected in that month

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    Solution Preview

    Total cash collected would be
    Cash sales = 468,311X20% = ...

    Solution Summary

    The solution explains how to prepare a schedule of cash collections for the current case study.