Question

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:

Answer 1

Instructions are below.

Step-by-step 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