Cash receipts A firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June and $100,000 i

Question

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Cash receipts A firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June and $100,000 i

n July and in August. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firm's expected cash receipts for June, July, and August?

Business

1 answer:

Ksivusya [100] · Answer 1 · 2022-04-23T08:06:59+03:00

Answer:

June expected cash receipts = $66,250

July expected cash receipts = $82,500

August expected cash receipts = $92,500

Explanation:

Note: See the attached excel file for the cash budget and the calculation.

The firm's expected cash receipts for June, July, and August can be determined by preparing a cash receipts budget.

A cash receipts budget refers to a plan of expected cash to be received during a particular period.

From the attached excel file, the firm's expected cash receipts for June, July, and August are as follows:

June expected cash receipts = $66,250

July expected cash receipts = $82,500

August expected cash receipts = $92,500

Download xlsx