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Calculating Cash Collections and Sales

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April May June
Sales Budget $150,000 $173,000 $ 194,000

credit sales are collected as follows:

65 % in the month of sale
20 % in the month after sale
15 % in the second month after the sale

accts. rec. balance at the end of the previous quarter was $57,000 of which $41,000 was uncollected December sales...

a. Compute sales for November
b December
c. Compute the cash collections from sales for each month Jan-March

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Solution Summary

This solution contains step-by-step calculations to determine the sales for November, December and the cash collections from sale for each month Jan-March. All formulas and workings are shown in an Excel file.

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Jan Feb March
Sales Budget 150000 173000 194000
Uncollected receivables from November sales were 57000-41000= $16000
(Total receivables-Uncollected from December sales)

November uncollected receivables are $16000 and this will be ...

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