November sales for last year were $95,000, while December sales were $110,000. Projected sales for...
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November sales for last year were $95,000, while December sales were $110,000. Projected sales for the next three months are as follows: Samson Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Samson Corporation has experienced the following collection pattern: $ 160,000 January sales 25% received in the month of the sale February sales 120,000 50% received in the month after the sale March sales 175,000 16% received two months after the sale Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers 9% of the credit sales are never received the nearest whole dollar.) Samson 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 16% Two months after Total cash collections
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