Solution-Calculate budgeted cash receipts for the quarter

Calculate budgeted cash receipts for the quarter ended

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Reference no: EM133074619

Question - Cannily Ltd, a retailer of handbags, is preparing a budget for the quarter ended 31 December 2021. Cannily estimates that approximately 70% of handbag sales will be received in cash and the rest will be on credit (non-cash). Of the credit sales, 20% of the money will be received in the month of sale, 40% will be received the following month and 38% will be received 2 months after sale. Approximately 2% of credit sales are never collected and are written off.

The actual sales for the previous quarter ended 31 September 2021 were as follows.

July $33,620

August 34,770

September 40,180

The budgeted sales for the December quarter are as follows:

October $42,640

November 43,950

December 45,920

Required - Calculate budgeted cash receipts for the quarter ended 31 December 2021?

Reference no: EM133074619

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Calculate budgeted cash receipts for the quarter ended

Reference no: EM133074619

Reference no: EM133074619

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