Question

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 collected two months after sale a. Prepare a monthly cash receipts schedule for the firm for March through August. Watt's Lighting Stores Cash Receipts Schedule Asti July August Credit sales In month of sale One month after sale Two months after sale Total cash receipts

Answer 1

			Watt's Lightining Store
		Cash Receipts Schedule
			January	February	March	April	May	June	July	August
Credit sale			46,000	45,000	43,000	49,000	38,000	47,000	55,000	57,000
In the month of sale					15050	17150	13300	16450	19250	19950
One month after sale					20250	19350	22050	17100	21150	24750
Two months after sale					4600	4500	4300	4900	3800	4700
Total cash receipts					82,900	90,000	77,650	85,450	99,200	106,400