Help if i solved this correctly

USA Discussion in 'Exams and Studying' started by Anastasiya T, Dec 12, 2017.

  1. Anastasiya T

    Anastasiya T

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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%
     
    Anastasiya T, Dec 12, 2017
    #1
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  2. Anastasiya T

    bklynboy VIP Member

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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.
     
    bklynboy, Dec 21, 2017
    #2
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  3. Anastasiya T

    Drmdcpa VIP Member

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    Numbers look good to me.
     
    Drmdcpa, Dec 22, 2017
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