A. Projected Cash Receipts
Ramis Brothers Inc. needs a cash receipts schedule for the months of April, May, and June.
Actual Sales: February = $500,000, March = $500,000.
Forecast Sales: April =$560,000, May= $610,000, June= $650,000, July= $650,000
Assuming that sales are the only source of cash inflows and that 30% of them are for cash, and the remainder is collected evenly over the following two months.
Assuming that sales are the only source of cash inflows and that 30% of them are for cash, and the remainder is collected evenly over the following two months. To solve Projected Cash Receipts, why not solved in considering to make 70% on the : 30% of the current month's sales 35% of last month's sales 35% of two months ago's sales.