A company is formulating its plans for the coming year,including the preparation of its cash budget.Historically,the company's sales are 30% cash.The remaining sales are on credit with the following collection pattern: Sales for the first 5 months of the coming year are forecast as follows:
For the month of April,the total cash receipts from sales and collections on account would be (CIA adapted)

Question

Quizplus · Accepted Answer

To calculate the total cash receipts for April, you need to consider both cash sales and collections from credit sales. Given that 30% of sales are cash, calculate 30% of April's sales. Then, add the collections from previous months' credit sales based on the given collection pattern.

A Company Is Formulating Its Plans for the Coming Year,including