Problem

Calculating Cash Collections. The following is the sales budget for Segura, Inc., for the...

Calculating Cash Collections. The following is the sales budget for Segura, Inc., for the first quarter of 2010:

 

January

February

March

Sales budget

$129,000

$146,000

$161,000

Credit sales are collected as follows:

65 percent in the month of the sale

20 percent in the month after the sale

15 percent in the second month after the sale

The accounts receivable balance at the end of the previous quarter was $92,000 ($67,000 of which was uncollected December sales).

a. Compute the sales for November.


b. Compute the sales for December.


c. Compute the cash collections from sales for each month from January through March.

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Solutions For Problems in Chapter 16