USA Help if i solved this correctly


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Mitll Co has the following budgeted sales foe the last half of next year:
Cash sales Credit Sales
July 50,000 150,000
August 55,000 170,000
September 45,000 130,000
October 50,000 145,000
November 60,000 200,000
December 80,000 350,000

The company is in proceess of creating a cash budget and must determine the expected cash collections by month.
Collections on Credit Sales:
50% in month of sale
30% in month following sale
20% in second month following sale

1) The total cash receipts during November would be:
I got 229500 (26000+43500+100000+60000)
but someone said its 236500
am I wrong?/
2) what is the budgeted accounts receivable on December 31st?
I got 215000 by 200000*20%+ 350000*50%
 

bklynboy

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For #1 I agree with you based on information if you are forecasting November Cash. Its Nov Cash (60,000) + 50% November Credit (100,000) + 30% of October Credit (43,500) + 20% September Credit (26,000) = 229,500. Let the person prove why this is not right. For #2 I also get 215,000.
 
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