Kiel Center sells only on credit (no cash sales). Prior collection patterns show that 28% of a month's
sales are collected in the month of the sale, 51% are collected in the month after the sale, and 19%
are collected in the second month after the sale. For example, June sales would be collected over three month, June (28%), July (51%) and August (19%).. The rest would be considered "uncollectible" and not included in the cash collections budget.
Sales budget for June through September show:
What is the cash collection budget for August and September?© BrainMass Inc. brainmass.com June 4, 2020, 4:34 am ad1c9bdddf
See Excel attached for schedules to guide you and instructional notes. Click in cells to see computations.