In: Accounting
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:
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 |
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 |