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The BRS Corporation makes collections on sales according to the following schedule: 30% in month of...

The BRS Corporation makes collections on sales according to the following schedule: 30% in month of sale 60% in month following sale 10% in second month following sale The following sales have been budgeted: Sales April $ 140,000 May $ 130,000 June $ 150,000 Budgeted cash collections in June would be:

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Expert Solution

  • All working forms part of the answer
  • Working

April

May

June

Budgeted Sales

$                           140,000.00

$             130,000.00

$                   150,000.00

30% collectable in month of sale

$                             42,000.00

$               39,000.00

$                    45,000.00

60% collectable in month following sale

$                             84,000.00

$               78,000.00

$                     90,000.00

10% collectable in second month of sale

$                             14,000.00

$               13,000.00

$                     15,000.00

  • Answer

June

Working

Cash collected from Sale of:

A = April Sale x 10%

April

$                             14,000.00

B = May Sale x 60%

May

$                             78,000.00

C = June Sale x 30%

June

$                             45,000.00

D = A+ B + C

Total cash collected in June

$                           137,000.00


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