How do I figure out monthly budget with .65 due during the month for sales and .15 the month before and .2 the month after, when I do not have the prior month's sales numbers?
Cash Collection Schedule:
The cash collection schedule from account receivables (credit sales) plays an important role in the determination of the cash budget. The cash collection schedule is prepared as expected collection from the debtors.
Answer and Explanation:
0.65 due during the month for sales means 65% of sales were credit sales. The meaning of 0.15 the month before means that 15% of earlier month sales would be collected during the current month. The meaning of 0.20 the month before means that 20% of two months earlier sales would be collected during the current month.
Become a member and unlock all Study Answers
Try it risk-free for 30 daysTry it risk-free
Ask a question
Our experts can answer your tough homework and study questions.Ask a question Ask a question
Learn more about this topic:
from Finance 101: Principles of FinanceChapter 18 / Lesson 3