A company is formulating its plans for the coming year, including the preparation of its cash...

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A company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, the compa

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Answer 1

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		January	February	March	April
	Total sales	3860000	4160000	3960000	4360000
	Cash sales	$ 11,58,000	$ 12,48,000	$ 11,88,000	$ 13,08,000
	Sales on account	$ 27,02,000	$ 29,12,000	$ 27,72,000	$ 30,52,000

		January	February	March	April
	Receipts from Cash Sales	$ 11,58,000	$ 12,48,000	$ 11,88,000	$ 13,08,000
Add:	Receipts from sales on account
	In the month of sale	$ 10,80,800	$ 11,64,800	$ 11,08,800	$ 12,20,800
	In the following month of sale		$ 15,67,160	$ 16,88,960	$ 16,07,760
	Total cash receipts collected	$ 22,38,800	$ 39,79,960	$ 39,85,760	$ 41,36,560

	Total cash receipts collected in the month of April		=		$ 41,36,560
	Collections on account		=	($3052000 X 58%)	$ 17,70,160

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Answer 2

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