Compute the cash collections that would be included

Assignment Help Accounting Basics

Reference no: EM131983662

Problem

Sunset Center's sales are all made on account. The firm's collection experience has been that 25 percent of a month's sales are collected in the month of sale, 65 percent are collected in the month following the sale, and 8 percent are collected in the second month following the sale. The sales forecast for the months of May through August is:

May $240,000
June $280,000
July $300,000
August $350,000

Calculate the cash collections that would be included in the cash budgets for July and August.

Reference no: EM131983662

Questions Cloud

What is the grapevine : What is the grapevine? What advice would you give to a new manager about the grapevine and how to handle it?

Compute the total cost per equivalent whole unit : Compute the cost per equivalent unit for materials, for labor, and for overhead. Compute the total cost per equivalent whole unit.

What do equal employment opportunity : What do equal employment opportunity (EEO), affirmative action, and managing diversity have in common? How do differ?

Several of the female employees have told gene : Gene is a homosexual and the only male who works at Rita's Boutique. Several of the female employees have told Gene that they could turn him straight

Compute the cash collections that would be included : Sunset Center's sales are all made on account. Compute the cash collections that would be included in the cash budgets for July and August.

Prepare the journal entry to correct the balances presently : Prepare the journal entry to correct the balances presently reported.Included in Inventory (and Accounts Payable) are $14,000 of lenses held on consignment.

Identification of the companys corporate strategies : HI5017 Managerial Accounting - You are required to prepare a report to recommend about ABC model for your company

How does your marketing strategy seek to achieve your vision : How will you measure if the marketing strategy is achieving your vision? What are the indicators to identify this?

What is the amount of revenue reported on income statement : What is the amount of revenue reported on the income statement? What is the amount of cash flow from operating activities reported on statement of cash flows?

User Account

All Pages