Calculate the Budgeted Cash Receipts from Customers for the month of January.
PLAID Company sales for January 2023 are expected to be:
January 2023: $10,000,000
Additional Information:
December 2022 Sales: $11,000,000
Sales are 50% Cash Sales and 50% Credit Sales.
Customers Accounts are normally collected in the following manner:
• 50% are paid in the month of sale
• 45% are paid in the month directly following the sale.
• 5% are uncollected
Required: Calculate the TOTAL Budgeted Cash Receipts for the month of January.
Format
Payments from Sales in
TOTAL cash receipts
Collections:
January