MJ5 Co. had the following budgeted sales for the last half of 2021: July $ 200,000 August $ 225,000 September $ 175,000 October $ 195,000 November $ 260,000 December 420,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: 20% of sales are in cash Collection on credit sales: 60% in the month of sale 30% in the month following sale 10% in the second month following sale The accounts receivable balance on July 1, 2021 consisted of the following: Uncollected June sales $ 60,000 Uncollected May sales $ 15,000 Total Accounts Receivable $ 75,000
MJ5 Co. had the following budgeted sales for the last half of 2021: July $ 200,000 August $ 225,000 September $ 175,000 October $ 195,000 November $ 260,000 December 420,000 The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: 20% of sales are in cash Collection on credit sales: 60% in the month of sale 30% in the month following sale 10% in the second month following sale The accounts receivable balance on July 1, 2021 consisted of the following: Uncollected June sales $ 60,000 Uncollected May sales $ 15,000 Total Accounts Receivable $ 75,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...
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I have attached the problem I'm working on. Can you please show me, step-by-step, how to solve for:
The total budgeted cash collections for July
The budgeted accounts receivable balance on December 31, 2021
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