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Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The sales forecasts indicate that sales are expected to be $85,000, $92,000, and $95,750 for the months of August, September, and October, respectively. Sales are 60% cash and 40% credit, and credit sales are collected evenly over the following 2 months. No other cash receipts are received. What are the firm’s expected cash receipts for the months of August, September, and October?

Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The sales forecasts indicate that sales are expected to be $85,000, $92,000, and $95,750 for the months of August, September, and October, respectively. Sales are 60% cash and 40% credit, and credit sales are collected evenly over the following 2 months. No other cash receipts are received. What are the firm’s expected cash receipts for the months of August, September, and October?

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter7: Budgeting
Section: Chapter Questions
Problem 14EB: Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is...
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Cash receipts A firm reported actual sales of $65,000 in the month of June and $70,000 in July. The sales forecasts indicate that sales are expected to be $85,000, $92,000, and $95,750 for the months of August, September, and October, respectively. Sales are 60% cash and 40% credit, and credit sales are collected evenly over the following 2 months. No other cash receipts are received.

What are the firm’s expected cash receipts for the months of August, September, and October?

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