Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be:

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Business

Hope Valdez

24 October, 15:30

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be:

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Davian Rosales · Answer 1

Total = $275,000

Explanation:

Giving the following information:

70% of sales are collected in the month of sale

20% in the month following sale

10% in the second month following sale.

Budgeted sales dа ta:

February = $300,000

March = $350,000

April = $250,000

The cash collection of any given month is comprised of cash from the two months before.

Cashe collection:

From February = 300,000*0.1 = 30,000

From March = 350,000*0.2 = 70,000

From April = 250,000*0.7 = 175,000

Total = $275,000