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Question - TED Corp wishes to prepare the cash budget for the month of March 2021 and has provided projected sales revenue data below:
Projected sales:
January 2021 $144,000
February 2021 $205,000
March 2021 $220,000
All sales are on credit with 65% collected during the month of sale, 30% collected during the month following the sale, and 5% during the second month after the sale.
Required -
1. Prepare the cash receipts section of a cash budget for TED Corp for the month of March 2019.
2. Discuss how the cash budgeting process will help TED Corp achieve its goals.
What accounting conventions do the two companies follow, US GAAP or IFRS
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