Simpson Glove Company has made the following sales projections for the next six months. All...
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Finance
Simpson Glove Company has made the following sales projections for the next six months. All sales are credit sales.
March
$61,000
June
$67,000
April
70,000
July
78,000
May
52,000
August
82,000
Sales in January and February were $41,000 and $39,000, respectively. Experience has shown that of total sales receipts 10 percent are uncollectible, 40 percent are collected in the month of sale, 30 percent are collected in the following month, and 20 percent are collected two months after sale.
Prepare a monthly cash receipts schedule for the firm for March through August.
Simpson Glove Company Cash Receipts Schedule
January
February
March
April
May
June
July
August
Sales
$
$
$
$
$
$
$
$
Collections of current sales
Collections of prior months sales
Collections of sales 2 months earlier
Total cash receipts
$
$
$
$
$
$
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