A3_MGT223H5S2010 - Question One Cash Budget The LaPann...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Question One Cash Budget The LaPann Company has obtained the following sales forecast data: July August September October Cash Sales $ 80,000 $ 70,000 $ 50,000 $ 60,000 Credit Sales $240,000 $220,000 $180,000 $200,000 The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. Required: (Please explain how you derive the answers.) 1.What is the budgeted accounts receivable balance on September 30? 2. What are the budgeted cash receipts for October?
Image of page 1

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

View Full Document Right Arrow Icon