Sales budget




Credit sales are collected as follows:

65 percent in the month of the sale 20 percent in the month after the sale 15 percent in the second month after the sale

The accounts receivable balance at the end of the previous quarter was $60,000 ($26,000 of which was uncollected December sales).

a. Compute the sales for November.

b. Compute the sales for December.

c. Compute the cash collections from sales for each month from January through March.

Calculating the Cash Budget Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2002:

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