Holiday Corporation has found that 60% of its sales in any given month are credit sales, while the remainder are cash sales. Of the credit sales, Holiday Corporation has experienced the following collection pattern: 25% received in the month of the sale 50% received in the month after the sale 16% received two months after the sale 9% of the credit sales are never received November sales for last year were $ 90 comma 000, while December sales were $ 115 comma 000. Projected sales for the next three months are as follows: January sales. . . . . . . . . . . . . . . . $145,000 February sales. . . . . . . . . . . . . . . $125,000 March sales. . . . . . . . . . . . . . . . . $180,000 Requirement Prepare a cash collections budget for the first quarter, with a column for each month and for the quarter. (Round your answers to the nearest whole dollar.)

Total   Cash Collection Budget Jan $ 74890      

Total   Cash Collection Budget  Feb  $ 73290        

Total   Cash Collection Budget  Mar $ 78420        

Total   Cash Collection Budget   Quarter  $ 226600

Explanation:

Holiday Corporation

Cash Collection Schedule

                  November December  January      February      March

Sales          $ 90,000   $115,000    $145,000  $ 125,000 $ 180,000

Credit Sales  60%           60%           60%           60%            60%

Credit Sales   54000      69,000     87,000      75,000       108,000

Collections      25%          50%           16%

November      13,500      27000        8640

$115,000                         25%          50%           16%

December                         17,250      34,500        11040

$145,000                                             25%          50%           16%

January                                                21750        43500        13920

125,000                                                                  25%          50%        

February                                                                 18750        37500  

108,000                                                                                     25%

March                                                                                          27000      

Total                                                       74890       73290         78420    

We calculate the amounts with the given percentages 25% in the first month 50% in the second and 16% in the third and get the above figures.

Holiday Corporation

Cash Collection Budget

                   January      February      March            Total

Sales          $   $145,000  $ 125,000 $ 180,000

Credit Sales        60%           60%            60%

Credit Sales       87,000      75,000       108,000    270,000

Collections            

November            8640

December            34,500        11040

January                  21750        43500        13920        

February                                    18750        37500        

March                                                             27000                    

Total                        74890       73290         78420        226600

answer; im, thinking it should be (7yrs)///plz check first.good luck