Cash%20Budgeting

# Cash%20Budgeting - \$200,000 August 225,000 September...

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Cash Budgeting Problem July \$200,000 August 225,000 September 168,750 October 202,500 November 250,000 December 276,500 On average, 20% of the sales are for cash. Of the sales on account, approximately 25% are collected the month of sale, 55% the month following the sale, 19% the second month following the sale and 1% is uncollectible. Based upon the above information, prepare a cash budget (collections) for the month of Octobe

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Cash Budgeting Solution July

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Unformatted text preview: \$200,000 August 225,000 September 168,750 October 202,500 November 250,000 December 276,500 On average, 20% of the sales are for cash. Of the sales on account, approximately 25% are collected the month of sale, 55% the month following the sale, 19% the second month following the sale and 1% is uncollectible. Based upon the above information, prepare a cash budget (collections) for the month of Octobe October sales Cash (\$202,500 x 20%) \$40,500 Credit (\$202,500 x 80% x 25%) 40,500 September sales Credit (\$168,750 x 80% x 55%) 74,250 August sales Credit (\$225,000 x 80% x 19%) 34,200 Total \$189,450 er...
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## This note was uploaded on 07/13/2009 for the course ACCOUNTING ACG2071 taught by Professor Pelt during the Spring '09 term at Gulf Coast Community College.

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Cash%20Budgeting - \$200,000 August 225,000 September...

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