Question

Ginobili has forecast sales to be $112,200 in February, $154,500 in March, $160.200 in April, and $178,500 in May. The average cost of goods sold is 70% of sales. 29% of sales are on made on credit the rest are for cash. The sales on credit are collected 65% in the month of sale, and 35% the month following. What are budgeted cash receipts on credit sales in March collected in March?

Answer 1

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Ans: to Budgeted in March cash receipts on credit sales in March collected is : $ 29123:25 Worekings: (i) credit salles :$ 44805 for the month of March (154560 X 297) (1) Budgeted cash collected out of credit - sores of March ( 44805 8 658) : $29123.25 Note! The question is asked - to calculate budgeted cash receipts on credit sale in March Hence, we should not consider the cash receipt a on . the credit sare made in february

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