Question

Ginobili has forecast sales to be $120,800 in February, $155,100 in March, $160,500 in April, and $177,600 in May. The average cost of goods sold is 70% of sales. 64% 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

budgeted cash receipts on credit sales in March collected in March. = (155,100*64%*65%) = 99,264 * 65% = 94,521.6 = 94,522

Note that I have rounded some numbers. Comment if you face any issues