Complete Financial Analysis Assignment

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Complete Financial Analysis Assignment

6-31 Sales Budget

A Sendai clothing wholesaler was preparing its sales budget for the first quarter of 20X8.  Forecast sales are as follows (all values are in thousands of yen).

January:  203,000
February:  227,000
March:  248,000

Sales are 40% cash and 60% credit.  55% of the credit accounts are collected in the month of sale, 35% in the month following the sale, and 10% in the following month.  No uncollectable accounts are anticipated.  Accounts receivable at the beginning of 20X8 are 82,950 (10% of November credit sales of 140,000 and 4% of December credit sales of 151,000).

Prepare a schedule showing sales and cash collections for January, February, and March, 20X8.