Explore BrainMass

# Calculating Cash Collections and Sales

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

#### Solution Preview

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 ...

#### 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.

\$2.19