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Question - TED Corp wishes to prepare the cash budget for the month of March 2021 and has provided projected sales revenue data below:
Projected sales:
January 2021 $144,000
February 2021 $205,000
March 2021 $220,000
All sales are on credit with 65% collected during the month of sale, 30% collected during the month following the sale, and 5% during the second month after the sale.
Required -
1. Prepare the cash receipts section of a cash budget for TED Corp for the month of March 2019.
2. Discuss how the cash budgeting process will help TED Corp achieve its goals.
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