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Otrada [13]
3 years ago
9

Crew Clothing (CC) sells women’s resort casual clothing to high-end department stores and in its own retail boutiques. CC expect

s sales for January, February, and March to be $510,000, $570,000, and $590,000, respectively. Twenty percent of CC’s sales are cash, with the remainder collected evenly over two months. During December, CC’s total sales were $820,000. CC is beginning its budget process and has asked for your help in preparing the cash budget.
-Compute CC’s expected cash receipts from customers for each month. (January, Febuary, March)
Business
1 answer:
motikmotik3 years ago
7 0

Answer:

                                              January                February                   March

Total  Cash Receipts         $634,000                $546,000             $582,000

Explanation:

<u>CC’s expected cash receipts from customers</u>

                                              January                February                   March

<em>Sales                                     $510,000              $570,000               $590,000</em>

<u>Cash Receipts</u>

Cash  - 20%                          $102,000                 $114,000                $118,000

Credit  - 40%                        $328,000                $228,000             $236,000

Credit  - 40%                        $204,000                $204,000             $ 228,000

Total                                      $634,000                $546,000             $582,000

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Let
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