Reference no: EM132543247
The LePann Company has started a new business and obtained the following sales forecast data :
July August September October
Cash Sales.................................. $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit Sales ............................. $ 240,000 $220,000 $180,000 $200,000
The regular pattern of the collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale and the reminder in the second month following the month of sale. There are no bad debts.
Question 1: Make an expected cash collection budget for the month of July, August, September and for the quarter