Cave Hardwares forecasted sales for April May June and July

Cave? Hardware\'s forecasted sales for? April, May,? June, and July are

$200,000?,

$290,000?,

$190,000?, and

$220,000? respectively. Sales are

70?%

cash and 30?% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is

75?% of sales and ending inventory is maintained at

$35,000 plus

10?% of the following? month\'s cost of goods sold. All inventory purchases are paid

24?% in the month of purchase and

76?% in the following month.

What are the cash collections budgeted for June at Cave? Hardware?

Solution

Calculate cash collection for june :