The ABC Corporation makes collections on sales according to the following schedule: 25% in month of sale 71% in month following sale 4% in second month following sale The following sales have been budgeted: Sales April $ 180,000 May $ 110,000 June $ 100,000 Budgeted cash collections in June would be:

Question

Business

Quinten Campos

16 October, 09:35

The ABC Corporation makes collections on sales according to the following schedule: 25% in month of sale 71% in month following sale 4% in second month following sale The following sales have been budgeted: Sales April $ 180,000 May $ 110,000 June $ 100,000 Budgeted cash collections in June would be:

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Answers (1)

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Josh Hodges · Answer 1

Budgeted cash collection in June=$110,300

Explanation:

Budgeted cash collection in June will be determined as follows:

Month of sale collection

= 25%*June sales = 25% * 100,000 = 25,000

Month following sales collection

71% * May sales = 71% * 110,000 = 78,100

Second month following sales collection

4% * April Sales = 4% * 180,000 = 7200

Budgeted cash collection in June = 25,000 + 78,100 + 7200 = 110,300

Budgeted cash collection in June=$110,300