Cash Budgeting

Use the information below to prepare a cash receipts budget for Aussie Choice for the months of January, February, and March. 

Actual net sales were:  

November December $11,000 $12,100 respectively 

Budgeted net sales are:  

January February March $13,200 $14,300 $15,400 respectively 

Sales are 70% credit and 30% cash.  

Interest $5,000 is received in March 

Dividends on investments $5,000 are declared in January however the shares have been disposed of. 

Aussie Choice budgets to collect accounts receivable as follows:  

• 50% in the month of sale.  

• 30% in month after sale.  

• 20% in second month after sale (10% of these are uncollectable)