Question

You are the owner of a new, BBQ and Patio Accessories Store in Calgary. You have...

You are the owner of a new, BBQ and Patio Accessories Store in Calgary.
You have budgeted the following information regarding next years operating results and cash flow patterns:
Sales Type % of Total Collection Pattern
     Credit card sales 55% 70% in the quarter of sale
30% in the quarter following sale
     Cash sales 25% 100% in the quarter of sale
     Sales on account 20% 65% in the quarter of sale
25% in the quarter following sale
10% in the 2nd quarter following sale
Total Budgeted Sales:
1st quarter 450,000
2nd quarter 365,000
3rd quarter 260,000
4th quarter 560,000
Required: Based on the above information prepare a schedule of budgeted cash
collections for the 3rd quarter.

Note- Introductory management accounting

Business   Accounting   
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Answer #1

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Note:for calculation see working notes on page 2 and 3

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