Cash receipts budget Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:Actual:July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,000August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000Forecast:September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,000October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,000November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,000December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,000Based on past experience, it is estimated that 30% of a month’s sales are collected in the month of sale, 55% are collected in the month following the sale, and 10% are collected in the second month following the sale.Required:Calculate the estimated cash receipts for September, October, and November.
Actual:
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 98,000
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,000
Forecast:
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,000
October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94,000
November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122,000
December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,000
Based on past experience, it is estimated that 30% of a month’s sales are collected in the month of sale, 55% are collected in the month following the sale, and 10% are collected in the second month following the sale.
Required:
Calculate the estimated cash receipts for September, October, and November.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
