Question

Jewel Service anticipates the following sales revenue over a five-month period: The company's sales are 40% cash and 60% credit. Its collection history indicates that credit sales are collected as follows: How much cash will be collected in January? In February? In March? For the quarter in total? Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole dollar.)

Answer 1

Answer:

I looked up the missing information, hopefully it's the same as your question. If not you can adjust the answer.

Its collection history indicates that credit sales are collected as follows:

• 25% in the month of the sale
• 50% in the month after the sale
• 15% two months after the sale
• 10% are never collected

sales revenue:

• November $16,100
• December $10,400
• January $15,600
• February $12,400
• March  $14,400

                                          Jewel Services

                                   Cash Collections budget

                For the months of January, February, and March

cash collected from sales      January    February    March          Quarter

from November sales             $2,415                                              $2,415

from December sales             $5,200     $1,560                            $6,760

from January sales                 $3,900     $7,800       $2,340        $14,040

from February sales                                 $3,100       $6,200        $9,300

from March sales                                                        $3,600        $3,600

Total                                        $11,515      $12,460     $12,140        $36,115