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

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
er
Background image of page 2
Cash Budgeting Solution July
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

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.

Page1 / 4

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

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online