Nizwa Pharmacy is developing its fourth-quarter monthly cash budget for 2021. On nvestigation, the following actual and expected sales information was revealed- August September October November December 41,500 38,000 29,000 34,000 39,500 Of a given month's sales, 40 percent are typically collected in the month of sale. Thirty percent of a given month's sales are collected in the month following the sale. The remaining 30 percent are collected in the second month following the month of the sale. Bad debts are negligible and should be ignored. Prepare a schedule of cash collections for Nizwa Pharmacy Company by month for fourth quarter of 2021.

Nizwa Pharmacy is developing its fourth-quarter monthly cash budget for 2021. On nvestigation, the following actual and expected sales information was revealed- August September October November December 41,500 38,000 29,000 34,000 39,500 Of a given month's sales, 40 percent are typically collected in the month of sale. Thirty percent of a given month's sales are collected in the month following the sale. The remaining 30 percent are collected in the second month following the month of the sale. Bad debts are negligible and should be ignored. Prepare a schedule of cash collections for Nizwa Pharmacy Company by month for fourth quarter of 2021.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 13SEP

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