Asked by Inderpreet Bains on Jul 07, 2024
Verified
Diego,Inc.,sells two products,Baubles and Charms.The sales forecast in units for the first quarter of the coming year is:
Cash sales are 30% of each product's monthly sales.The remaining sales are credit sales which are collected as follows: 70% in the month of sale,20% the next month,and 10% in the following month.Unit sale prices are $30 and $20 for Baubles and Charms,respectively.
Determine the company's cash receipts for March from its current and past sales.
Sales Forecast
A sales forecast is the projection of the amount of revenue a company will generate through sales activities over a specific period.
Cash Receipts
Represents the money received by a business during a specific period, including revenues from sales, services, and loans.
- Understand the dynamics of cash flow and the management thereof within budgeting, focusing on sales receipts and the development of a cash budget.
- Compute projected sales revenue and quantify sales volume expansion.
Verified Answer
MD
Learning Objectives
- Understand the dynamics of cash flow and the management thereof within budgeting, focusing on sales receipts and the development of a cash budget.
- Compute projected sales revenue and quantify sales volume expansion.