Homework SourseThe BRS Corporation makes collections on sales according to
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:
Solution
Answers
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
| 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 |
