Question

Watts Lighting Stores made the following sales projection for the next six months. All sales are credit sales March $46,000 June $50,000 April 52,000 July 58,000 May 41,000 August 60,000 Sales in January and February were $49,000 and $48,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 25 percent are collected in the month of sale, 35 percent are collected in the following month, and 30 percent are collected two months after sale. a. Prepare a monthly cash receipts schedule for the firm for March through August. Watts Lighting Stores Cash Receipts Schedule May June August Credit sales In month of One month after sale Two months after sale Total cash receipts

0 0
Add a comment Improve this question Transcribed image text
Answer #1

I Have done the Solution in Excel Since the calculations will be easier.

I've attached two pictures one solution and other the formula used.

It is pretty straightforward.

Solution

Jan Feb Mar Apr May Jun Jul Aug $49,000 $48,000 $46,000 $52,000 $41,000 $50,000 $58,000 60,000 6 8 9 Watts Lighting Stores Feb Jan Mar Apr un Jul Aug Credit Sales In month of Sale One Month After Sale 35% Two Month after Sale 30% Total Cash Receipt $49,000$48,000|$46,000|$52,000$41,000$50,000 $58,000| $60,000 11500 $13,000 $10,250 $12,500 $14,500 $15,000 $16,800$16,100 $18,200 $14,350 $17,500 $20,300 $14,700 $14,400 $13,800 $15,600 $12,300 $15,000 $89,000 $95,500 $83,250 $92,450 $102,300 $110,300 14 25% 20 21 Uncollectable Collected in the Month of sale Collected in Following Month Collected in two months 10% 25% 35% 30%

Explanation

Jan Feb Mar 49000 48000 52000 41000 May 58000 Aug Watts Lighting Stores Feb Jan 49000 48000 46000 Mar Ma 41000 Jul 58000 113 C14 113 C15 H13 C16 Jun Au Credit Sales In month of Sale One Month After Sale Two Month after Sale Total Cash Receipt 52000 0.25 0.35 0.3 -SF$13 C14 G13 C14 -E13 C15 -D13 C16 -F13 C15 -E13 C16 H13 C14 G13 C15 F13 C16 113 C14 -H13 C15 -G13 C16 K13 C14 113 C15 113 C16 SUM(F13:F16) SUM(G13:G16) SUM(H13:H16) SUM(13:116)SUM(13:J16) SUM(K13:K16) 20

Please Let me know if you need any more clarification.

Regards,

Add a comment
Know the answer?
Add Answer to:
Watt's Lighting Stores made the following sales projection for the next six months. All sales are...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Watt's Lighting stores made the following sales projection: Watt's Lighting Stores made the following sales projection...

    Watt's Lighting stores made the following sales projection: Watt's Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March April May 47,000 55,000 57,000 $43,000 June 49,000 July 38,000 August Sales in January and February were $46,000 and $45,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 35 percent are collected in the month of sale, 45 percent are collected in the following month, and 10 percent are...

  • Watt’s Lighting Stores made the following sales projection for the next six months. All sales are...

    Watt’s Lighting Stores made the following sales projection for the next six months. All sales are credit sales. March $35,000 April 41,000 May 30,000 June 39,000 July 47,000 August 49,000 Sales in January and February were $38,000 and $37,000, respectively. Experience has shown that of total sales, 10 percent are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a. Prepare a...

  • Laura's Decor Stores made the following sales projection for the next six months. All sales are...

    Laura's Decor Stores made the following sales projection for the next six months. All sales are credit sales. march 38,000 April 44,000 may 33,000 june 42,000 july 50,000 august 52,000 sales in january and february were $41,000 and $40,000 respectively experience has shown that total sales, 10% are uncollectible, 35% are collected in the month of sale, 45 percent are collected in the following month and 10 percent are collected two months after sale. a) prepare a monthly cash receipts...

  • Simpson Glove Company has made the following sales projections for the next six months. All sales...

    Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales. March April May $41,000 June 50,000 July 32,000 August $47,000 58,000 62,000 Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale. Prepare...

  • Ed’s Waterbeds has made the following sales projections for the next six months. All sales are...

    Ed’s Waterbeds has made the following sales projections for the next six months. All sales are credit sales.   March $ 32,000   June $ 36,000   April 38,000 July 44,000   May 27,000 August 46,000 Sales in January and February were $35,000 and $34,000 respectively. Experience has shown that 10 percent of total sales are uncollectible, 30 percent are collected in the month of sale, 40 percent are collected in the following month, and 20 percent are collected two months after sale. a....

  • Getty Company expects sales for the first three months of next year to be $210,000, $235.000...

    Getty Company expects sales for the first three months of next year to be $210,000, $235.000 and $285,000, respectively. Getty expects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent In the month of the sale and 90 percent in the following month Compute a schedule of Getty's cash receipts for the months of February and March February March Budgeted cash receipts

  • Getty Company expects sales for the first three months of next year to be $190,000, $240,000...

    Getty Company expects sales for the first three months of next year to be $190,000, $240,000 and $285,000, respectively. Getty expects 40 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month Compute a schedule of Getty's cash receipts for the months of February and March. March February Budgeted Cash Receipts

  • Getty Company expects sales for the first three months of next year to be $215,000, $260,000 and $300,000, respectively...

    Getty Company expects sales for the first three months of next year to be $215,000, $260,000 and $300,000, respectively. Getty expects 40 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty's cash receipts for the months of February and March. February March Budgeted Cash Receipts

  • Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March...

    Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: March April May June 22,000 24,000 21,500 20,000 Wright maintains an ending inventory for each month in the amount of one times the expected sales in the following month. The ending inventory for February (March's beginning inventory) reflects this policy. Materials cost $4 per unit and are paid for in the month after production. Labor cost is $8 per unit and is paid for in...

  • Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and nee...

    Harry’s Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales figures:      Actual Forecast Additional Information November $460,000 January $540,000 April forecast $470,000 December 480,000 February 580,000 March 480,000 Of the firm’s sales, 50 percent are for cash and the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT