Cash Collection Budget
Not what you're looking for?
Cash Collection Budget
Ana cortes Antiques offers a 2% discount to customers who pay cash at the time of sale and a 1% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern:
Cash collected at time of sale 50%
Collected within cash discount period in first 10 days of month after sale 10
Collected after cash discount period in first month after month of sale 25
Collected after cash discount period in second month after month of sale 12
Never collected 3
Compute the total cash budgeted to be collected in March if sales forecasts are $360,000 for January, $400,000 for February, and $450,000 for March.
Purchase this Solution
Solution Summary
The solution explains how to make a cash collection budget for Ana Cortes Antiques case study with step-by-step calculations and brief explanations.
Solution Preview
Cash collection in March
Cash collected at time of sale 50% = 450,000 X 50% X .98 (2% discount is given) = 220,500
Collected ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Lean your Process
This quiz will help you understand the basic concepts of Lean.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.