Question

Milford Company has the following sales projection (in units) for the next six months:
Feb: 2100
Mar: 2300
Apr: 1900
May: 2600
Jun: 2200
Jul: 1700

Each unit sells for $37 through April and $42 starting in May.

Milford has prepared the following sales budget for the quarter of April, May and June:

Sales Budget
	April	May	June	Total
Sales in units	1900	2600	2200	6700
Selling price per unit	x $37	x $42	x $42
Sales revenue	$70300	$109200	$92400	$271900

All of the sales are on credit. Cautious collects from customers as follows:
50% of sales in the month of sale
30% in the month following the sale, and
20% in the second month following the sale

Prepare a cash receipts budget for the quarter of April, May and June.

What is budgeted cash receipts May?

Answer 1

Answer 1.
Sales Budget
	April	May	June	Total	Feb	March
Sales in Units	1,900.00	2,600.00	2,200.00	6,700.00	2,100.00	2,300.00
Sp Per Unit	37.00	42.00	42.00		37.00	37.00
Total Sales in $	70,300.00	109,200.00	92,400.00	271,900.00	77,700.00	85,100.00
Schedule of Expected Cash Collections from Sales
	April	May	June	Total
Collection from Accounts Receivables
Feb Sales	17,020.00			17,020.00
Mar Sales	25,530.00	17,020.00		42,550.00
Apr Sales	35,150.00	21,090.00	14,060.00	70,300.00
May Sales		54,600.00	27,720.00	82,320.00
Jun Sales			46,200.00	46,200.00
Total cash Collections	77,700.00	92,710.00	87,980.00	258,390.00
Budgeted Cash receipts May	92,710.00