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7)  Using the information below, calculate Party Time Inc.'s total cash receipts for January, February, and March....

7)  Using the information below, calculate Party Time Inc.'s total cash receipts for January, February, and March.

Of the 11,000 “Pirate Treasure Chests” (party favor boxes) expected to be sold in Q1, 3,000 boxes are expected to be sold in January, 3,500 in February, and 4,500 in March. Each box sells for $5.50, as reflected in the Sales Budget for the year. Sixty percent of the Party Time Inc.’s sales are credit sales. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is collected in the second month following the sale. Assume that there were $4,000 of accounts receivable from last year's sales that will be collected in January.

Jan.

Feb.

March

Total Cash Receipts (Cash Collected)
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