Question

JANUARY CASH RECEIPTS BUDGET

Projections:
January sales $1,000,000, February sales $800,000, March sales $1,200,000 and beginning Accounts Receivable (AR from December) sales is $500,000.

Assume Cash Sales are 20% of sales each month. Of the remaining 80% of sales, 60% is collected in the current month and 40% is collected in the following month.

So during the month of January, the following is the amount of cash collected (select from each dropdown box):

January Cash Receipts Budget	$$
Cash sales	Choose...1,000,000480,000400,000500,000320,000200,0001,180,000
Accounts receivable	Choose...1,000,000480,000400,000500,000320,000200,0001,180,000
January credit sales	Choose...1,000,000480,000400,000500,000320,000200,0001,180,000
Total cash collected	Choose...1,000,000480,000400,000500,000320,000200,0001,180,000

Answer 1

in December sales amounts to Rs 5,00,000 from which 20% of Rs 5,00,000 is received on December month itself (i.e., Rs 1,00,000) and rest 80% of sales on credit out of which 60% is received on December month (i.e., Rs 2,40,000) and rest 40% will received on January month (i.e. Rs 1,60,000)

December month sales received = Rs 1,00,000 + Rs 5,00,000 = Rs 6,00,000

in January sales amounts to Rs 10,00,000 from which 20% of Rs 10,00,000 is received on January month itself (i.e., Rs 2,00,000) and rest 80% of sales on credit out of which 60% is received on January month (i.e., Rs 4,80,000) and rest 40% will received on Feburary month (i.e. Rs 3,20,000)

January month sales received = Rs 2,00,000 + Rs 4,80,000 + Rs 1,60,000 = Rs 8,40,000