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Homework answers / question archive / Ginobili has forecast sales to be $115,900 in February, $156,600 in March, $163,900 in April, and $177,700 in May
Ginobili has forecast sales to be $115,900 in February, $156,600 in March, $163,900 in April, and $177,700 in May. The average cost of goods sold is 70% of sales. 49% 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 in March on cash sales in March?
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Ginobili has forecast sales to be $139,600 in February, $152,700 in March, $168,200 in April, and $179,200 in May. The average cost of goods sold is 70% of sales. 36% 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?
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Ginobili has forecast sales to be $133,700 in February, $156,400 in March, $161,000 in April, and $174,000 in May. 45% of sales are on made on credit, the rest are for cash. The sales on credit are collected 70% in the month of sale, and 30% the month following.
What are the total budgeted cash receipts in March?bg
Solution 1 :-
Budgeted cash receipts in March on cash sales in March
= 51% of march sales
=51%*$156,600
=$79,866
Solution 2:-the budgeted cash receipts on credit sales in March collected in March
= 65% of March's credit sales
=65% * ($152,700*36%)
=$35731.80
Solution 3:-the total budgeted cash receipts in March
=Cash sales of March + 70% of March's Credit sales + 30% of February's Credit
=55%*$156,400 + 70%*($156,400*45%) + 30%*($133,700*45%)
=$86020 + $49266 + $18049.5
=$153335.50
