# 1.Company is budgeting for cash receipts for each month in the 1st quarter of 2016. Expected...

## Question:

1.Company is budgeting for cash receipts for each month in the 1st quarter of 2016. Expected sales: 20% of sales are made for cash and 80% on account.60% of credit sales are collected in the same month. 30% collected in the following month and 10% collected in the second month after sales. Calculate budgeted cash collection for the month of March.

## Budgeted Cash Collections:

This is a term used while preparing the master budget. This refers to the expected cash collection form the customers withing a time period who has purchased the material or stock on credit.

## Answer and Explanation:

Answer: Let assumes the sales in the quarter is 600000 which is as follows:

Jan=100000

Feb=200000

March=300000

 ASSUME SALES $100,000$200,000 \$30...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

#### Learn more about this topic:

Cash Collection & Concentration: Definition & Components

from Finance 101: Principles of Finance

Chapter 18 / Lesson 3
3.2K