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Homework answers / question archive / The following is the sales budget for Coore, Inc

The following is the sales budget for Coore, Inc

Finance

The following is the sales budget for Coore, Inc., for the first quarter of 2019:

 

 

 JanuaryFebruaryMarch  Sales budget$146,000$163,000$178,000

 

Credit sales are collected as follows:

 70 percent in the month of the sale25 percent in the month after the sale5 percent in the second month after the sale The accounts receivable balance at the end of the previous quarter was $71,550 ($62,400 of which was uncollected December sales). a.Compute the sales for November. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

b.Compute the sales for December. (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)c.Compute the cash collections from sales for each month from January through March. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)  

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1) Computation of Sales for November:        
  Cash Collected from Sales = 70%        
  Uncolllected Sales Amount = $62,400  
  Total sales in December = 62400/30%  
  Total Sales in December 208000      
           
2) Computation of Sales for December:        
  Total Account Receivable = 5% of November Sales + Uncollected Amount of December Sale
  71550 = 5% of November Sale + 62400      
  5% November Sale  9150      
  November Sale $9,150/5%      
  November Sale 183000      
           
           
3) Computation of Cash Collection from Sales for Each Month:        
    January February March  
  Sales 146000 163000 178000  
           
  Sales Collected in Month of Sale @70% 102200 114100 124600  
  Sales Collected from Previos Month Sale @25% 52000 36500 40750  
  Sales Collected from Previous Two Month Sale @5% 9150 10400 7300  
           
  Cash Collection 163350 161000 172650  
         

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