Question

Build the projected revenue budget for the six months ending in December.

Apollo cash receipts
1.5.20xx – 30.9.20xx
May June July Aug. Sept. Oct. Nov. Dec.
3,000 5,000 7,000 5,000 5,000 4,500 3,000 3,000

Note:
Cash receipts are shown. Credit revenues are twice that of cash each month. Credits sales were $3,000 in March and $5,000 in April. Credit terms are 50% by end of the month; 35% by end of the next month balance by end of third month.
May June July Aug Sept Oct Nov Dec
Cash 3,000 5,000 7,000 5,000 5,000 4,500 3,000 3,000
Total Credit 6,000 10,000 14,000 10,000 10,000 9,000 6,000 6,000
Cr rcvd. 90 days
Cr rcvd. 60 days
Cr rcvd. 30 days
Total $

Answer 1

Answer on Question #82322 - Economics - Accounting

Question: Build the projected revenue budget for the six months ending in December.

Apollo cash receipts

1.5.20xx – 30.9.20xx

May June July Aug. Sept. Oct. Nov. Dec.

3,000 5,000 7,000 5,000 5,000 4,500 3,000 3,000

Note:

Cash receipts are shown. Credit revenues are twice that of cash each month. Credits sales were $3,000 in March and $5,000 in April. Credit terms are 50% by end of the month; 35% by end of the next month balance by end of third month.

Cr rcvd. 90 days

Cr rcvd. 60 days

Cr rcvd. 30 days

Total $

Solution

March credit sales collected in March: $3,000×50%=$1,500

March credit sales collected in April: $3,000×35%=$1,050

March credit sales collected in May: $3,000×15%=$450

April credit sales collected in April: $5,000×50%=$2,500

April credit sales collected in May: $5,000×35%=$1,750

April credit sales collected in June: $5,000×15%=$750

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