Calculate the budgeted cash receipts

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Reference no: EM133433295

Everywhere Sports is a retail store supplying sporting equipment to community sports clubs. Information about the store's operations is as follows:

• October sales amounted to $300 000.

• Sales are budgeted at $340 000 for November and $350 000 for December.

• Receipts are expected to be 60 per cent in the month of sale and 38 per cent in the month following the sale. Two per cent of sales receipts are expected to be uncollectable.

• Cost of sale is 60% of the sale price. All goods are purchased in the month of sale while payment is made in the month following the purchase.

• Other monthly expenses paid in cash amount to $45 000.

• Annual depreciation expense is $30 000.

Required:

Calculate the budgeted cash receipts for the months of November and December.

Reference no: EM133433295

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