High Life Corporation Has the Following Sales Budget for the Last

question 127

Essay

High Life Corporation has the following sales budget for the last four months of 2018: $\begin{array} { l r } \text { Month } & \text { Sales } \\ \text { September } & \$ 400,000 \\ \text { October } & 320,000 \\ \text { November } & 440,000 \\ \text { December } & 360,000 \end{array}$
Historically, the following trend has been established regarding cash collection of sales:
65 percent in month of sale
25 percent in month following sale
8 percent in second month following sale
2 percent uncollectible The company allows a 2 percent cash discount for payments made by customers during the month of the sale. July and August sales were $400,000 and $240,000, respectively.
Required:
Prepare a schedule of budgeted cash collections from sales for September, October, and November.

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Definitions:

Deductive Approach

A reasoning process that moves from a general premise to a specific conclusion.

Antagonizing

Actively causing someone to become hostile or creating an adversary unnecessarily.

Perception Of Reality

How individuals interpret the world around them, which can differ significantly from person to person based on experiences and beliefs.

Previous Experiences

The events or activities that an individual has encountered or participated in before the present time, often influencing current behavior or decisions.