- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
Viewing 4 posts - 1 through 4 (of 4 total)
- Posts
Can you give an instruction how to calculate cash sales and credit sales in the following question?
Question: Prepare a cash budget for January and February 2014.
40% pay within the month of sale and get a 5% discount.
So the sales in January are 30,000 x $12 = $360,000.
The cash received in January will be (40% x 360,000) – 5% = 136,80060% pay in the following month, the cash received in February from Januarys sales will be 60% x 360,000 = 216,000
You can do the same for each month (Februarys sales will be part cash received in February and part cash received in March in exactly the same way).
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.