Question

Sweeney Corporation has found that 80​% of its sales in any given month are credit​ sales,...

Sweeney Corporation has found that 80​% of its sales in any given month are credit​ sales, while the remainder are cash sales. Of the credit​ sales, Sweeney Corporation has experienced the following collection​ pattern:

25% received in the month of the sale

50% received in the month after the sale

24% received two months after the sale

1% of the credit sales are never received

November sales for last year were $90,000​, while December sales were $110,000. Projected sales for the next three months are as​ follows:

January sales. . . . . . . . . . . . . . . .

$165,000

February sales. . . . . . . . . . . . . . .

$115,000

March sales. . . . . . . . . . . . . . . . .

$190,000

Requirement

Prepare a cash collections budget for the first​ quarter, with a column for each month and for the quarter. ​(Round your answers to the nearest whole​ dollar.)

Sweeney Corporation

Cash Collections Budget

For the Months of January through March

January

Cash sales

Collections on credit sales:

25% Month of sale

50% Month after

24% Two months after

Total cash collections
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
HolidayHoliday Corporation has found that 6060 % of its sales in any given month are credit...
HolidayHoliday Corporation has found that 6060 % of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, HolidayHoliday Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 9% of the credit sales are never received November sales for last year were $ 90 comma 000$90,000 , while December sales...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 70,000 $ 170,000 February $ 75,000 $ 190,000 March $ 27,000 $ 150,000 April $ 22,000 $ 107,000 May $ 32,000 $ 220,000 June $ 100,000 $ 10,000 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: Collections...
Swifty Corporation estimates its sales at 140000 units in the first quarter and that sales will...
Swifty Corporation estimates its sales at 140000 units in the first quarter and that sales will increase by 13000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company’s sales are made on account. The following information has been provided by Spicer’s management.    Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 559,000 (estimated) April 584,000 (estimated) May 800,000 (estimated)    The company’s collection activity on credit sales historically has been as follows.    Collections in the month of the sale...
In March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
In March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company’s sales are made on account. The following information has been provided by Spicer’s management.    Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 593,000 (estimated) April 503,000 (estimated) May 800,000 (estimated)    The company’s collection activity on credit sales historically has been as follows.    Collections in the month of the sale...
Swifty Corporation estimates its sales at 190000 units in the first quarter and that sales will...
Swifty Corporation estimates its sales at 190000 units in the first quarter and that sales will increase by 11000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at A. 5250500 B. 3024500 C....
Topez Service anticipates the following sales revenue over a​ five-month period: November December January February March...
Topez Service anticipates the following sales revenue over a​ five-month period: November December January February March Sales Revenue $16,200 $10,800 $15,400 $12,200 $14,800 The​ company's sales are 40% cash and 60% credit. Its collection history indicates that credit sales are collected as​ follows: 25% in the month of the sale 50% in the month after the sale 20% two months after the sale 5% are never collected How much cash will be collected in​ January? In​ February? In​ March? For...
The LaGrange Corporation had the following budgeted sales for the first half of the current year:...
The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January $ 40,000 $ 140,000 February $ 45,000 $ 160,000 March $ 42,000 $ 120,000 April $ 37,000 $ 122,000 May $ 47,000 $ 190,000 June $ 70,000 $ 160,000 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: Collections...
The following is the sales budget for the given months of Hecto, Ltd.: Cash Sales Credit...
The following is the sales budget for the given months of Hecto, Ltd.: Cash Sales Credit Sales May $59,000 $283,000 June $43,000 $236,000 July $33,000 $205,000 August $47,000 $268,000 September $46,000 $197,000 Additional information to be used determining the expected cash collections each month that will be used in preparing the cash budget: Collections on Credit sales: 50% in month of sale 20% in month following sale 30% in second month following sale The Accounts Receivable balance on May 1...
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget...
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company’s sales are made on account. The following information has been provided by Spicer’s management.    Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 428,000 (estimated) April 805,000 (estimated) May 800,000 (estimated)    The company’s collection activity on credit sales historically has been as follows.    Collections in the month of the sale...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT