The LaGrange Corporation had the following budgeted sales for the first half of the current...
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Accounting
The LaGrange Corporation had the following budgeted sales for the first half of the current year:
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 on sales:
50% in month of sale
40% in month following sale
10% in second month following sale
The accounts receivable balance on January 1 of the current year was $65,000.
Required: Prepare expected cash collections budget for January, February, March, April and May.
January February March April May June Cash Sales $50,000 $55,000 $43,000 $38,000 $48,000 $80,000 Credit Sales $150,000 $170,000 $130,000 $123,000 $200,000 $170,000
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