Prepare cash collections budget for the first? quarter

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Reference no: EM131508745

LaChutt Corporation has found that 80?% of its sales in any given month are credit? sales, while the remainder are cash sales. Of the credit? sales, LaChut Corporation has experienced the following collection? pattern:

20% received in the month of the sale

40% received in the month after the sale

22% received two months after the sale

18% of the credit sales are never received.

November sales for last year were 85,000?, while December sales were $110,000.

Projected sales for the next three months are as? follows:

January sales. . . . . . . . . . . . . . $150,000

February sales. . . . . . . . . . . . . $115,000

March sales. . . . . . . . . . . . . . . $190,000

Requirement

Prepare a cash collections budget for the first? quarter, with a column for each month and for the quarter. ?(Round your answers to the nearest whole? dollar.

Reference no: EM131508745

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