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Question - The following sales budget has been prepared:
Month
Cash Sales
Credit Sales
September
$100,000
$220,000
October
$115,000
$190,000
November
$125,000
$200,000
December
$130,000
$180,000
Collections of credit sales are 50% in the month of sale, 40% in the month following sale, and 10% two months following sale. No uncollectible accounts are expected.
Required - What are the estimated cash collections in December?
If you were to perform a vertical analysis of this income statement, you would divide each of these income statement line items by
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