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12 November, 16:29

The ABC Corporation makes collections on sales according to the following schedule:

50% in month of sale

47% in month following sale

3% in second month following sale

The following sales have been budgeted:

Sales

April $ 200,000

May $ 170,000

June $ 160,000

Budgeted cash collections in June would be:

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Answers (1)
  1. 12 November, 17:04
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    Instructions are below.

    Explanation:

    Giving the following information:

    Cash collections:

    50% in the month of sale

    47% in the month following sale

    3% in the second month following sale

    The following sales have been budgeted:

    April $ 200,000

    May $ 170,000

    June $ 160,000

    Cash collection for June:

    From April = 200,000*0.03 = 6,000

    From May = 170,000*0.47 = 79,900

    From June = 160,000*0.5 = 80,000

    Total = $165,900
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