Answer:
-January: $116,638
January: $116,638- February: $100,825
January: $116,638- February: $100,825- March: $177,026
Explanation:
1. Calculate the cash sales for each month by multiplying the total sales by 45% (0.45):
- January cash sales: $155,000 * 0.45 = $69,750
- February cash sales: $100,000 * 0.45 = $45,000
- March cash sales: $195,000 * 0.45 = $87,750
2. Calculate the sales on account for each month by subtracting the cash sales from the total sales:
- January sales on account: $155,000 - $69,750 = $85,250
- February sales on account: $100,000 - $45,000 = $55,000
- March sales on account: $195,000 - $87,750 = $107,250
3. Calculate the cash receipts from sales on account for each month based on the collection percentages:
- January:
- 55% collected in January: $85,250 * 0.55 = $46,888
- 30% collected in February: $85,250 * 0.30 = $25,575
- 15% collected in March: $85,250 * 0.15 = $12,788
- February:
- 55% collected in February: $55,000 * 0.55 = $30,250
- 30% collected in March: $55,000 * 0.30 = $16,500
- March:
- 55% collected in March: $107,250 * 0.55 = $59,988
4. Add up the cash sales and cash receipts from sales on account to get the total cash receipts for each month:
- January cash receipts: $69,750 (cash sales) + $46,888 (sales on account) = $116,638
- February cash receipts: $45,000 (cash sales) + $30,250 (sales on account) + $25,575 (January sales on account) = $100,825
- March cash receipts: $87,750 (cash sales) + $59,988 (sales on account) + $16,500 (February sales on account) + $12,788 (January sales on account) = $177,026
The cash receipts section of the cash budget for LV Catering would show the following cash receipts for each month:
- January: $116,638
- February: $100,825
- March: $177,026