Question

Gem Service anticipates the following sales revenue over a​ five-month period: The​ company's sales are 40 % cash and 60 % credit. Its collection history indicates that credit sales are collected as​ follows:
Data Table November December January February March PrintDone

How much cash will be collected in​ January? In​ February? In​ March? For the quarter in​ total? Complete the cash budget to determine how much cash will be collected in​ January, February, March and for the quarter in total. ​

Answer 1

Gem Service
Schedule of Cash Collections
For the Three Months Ending March
	January	February	March
Receipts from cash sales:
Cash sales	$     6,240.00	$     4,880.00	$    5,760.00
January sales on account:
Collected in January	$     1,872.00
Collected in February		$     3,744.00
Collected in March			$    2,340.00
February sales on account:
Collected in February		$     1,464.00
Collected in March			$    2,928.00
March sales on account:
Collected in March			$    1,728.00
November sales on account
Collected in January	$       2,505.00
December sales on account
Collection in January	$       2,592.00
Collection in February		$        1,620.00
Total cash collected	$   13,209.00	$    11,708.00	$   12,756.00

	November	December	January	February	March
Total sales	$         16,700.00	$               10,800.00	$      15,600.00	$     12,200.00	$   14,400.00
Cash sales	$           6,680.00	$                  4,320.00	$        6,240.00	$       4,880.00	$     5,760.00
Sales on account	$         10,020.00	$                  6,480.00	$        9,360.00	$       7,320.00	$     8,640.00