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    Accounting: Cash budgeting.

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    The Smith Company, a merchandising firm, has planned the following sales for the next four months:

    January

    February

    March

    April

    Total budgeted sales............

    $50,000

    $70,000

    $90,000

    $60,000

    Sales are made 40% for cash and 60% on account. From experience, the company has learned that a months sales on account are collected according to the following pattern:

    Month of sale..........................................................

    70%

    First month following month of sale..........................

    20%

    Second month following month of sale.....................

    8%

    Uncollectible...........................................................

    2%

    Compute the budgeted cash receipts for April.

    © BrainMass Inc. brainmass.com June 4, 2020, 12:45 am ad1c9bdddf
    https://brainmass.com/business/cash-budgeting/accounting-estimating-cash-budget-358132

    Solution Summary

    The problem deals with estimating the cash budget using provided information.

    $2.19

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