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Problem - Budgeted sales of swimsuits for Kerrigan Co. for the first six months of the year 2017 are as follows:
Months Unit Sales
January 600,000
February 820,000
March 1,050,000
April 1,720,000
May 1,250,000
June 925,000
The beginning accounts receivable for 2017 is $125,000. Sales price per unit averages $55 per suit. The historical pattern of cash receipts is that 20% of the swimsuits are sold for cash. Of those sold on credit, 75% are collected within the month of sale, and 25% are collected the following month. Credit sales are the only source of accounts receivable.
Required: Prepare a cash receipts budget for each month, January through June.
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