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Business, 26.02.2020 05:51 evsdcp44b3w
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
Cash Sales Credit Sales
January $40,000 $140,000
February $45,000 $160,000
March $39,000 $120,000
April $34,000 $119,000
May $44,000 $190,000
June $70,000 $130,000
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
Collections on sales:
55% in month of sale
40% in month following sale
5% in second month following sale
The accounts receivable balance on January 1 of the current year was $82,000, of which $63,000 represents uncollected December sales and $19,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:
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The LaGrange Corporation had the following budgeted sales for the first half of the current year:
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