Description of this paper

Coyote Loco is a manufacturer of salsa. The follow...

Description

Solution


Question

Coyote Loco is a manufacturer of salsa. The follow historical collection pattern cor its credit sales are as follows : 70% colleceted in month of sale 15% collected in first month after sale 10% collected in second month after sale 4% collected in third month after sale 1% uncollectible. The sales on account have been budgeted for the last seven months as : June - $122,500 july - 150,000 august - 175,000 sept - 200,000 oct - 225,000 nov - 250,000 dec - 212,500 1. Compute estimated cash collections during october from credit sales. 2. compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter 3. Make a spreadsheet solving the 2 previous requirements.

 

Paper#3263 | Written in 18-Jul-2015

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