Question

The following information pertains to the January operating budget for Casey Corporation. times Budgeted sales for January $ 200 comma 000 and February $ 109 comma 000. times Collections for sales are 40​% in the month of sale and 60​% the next month. times Gross margin is 30​% of sales. times Administrative costs are $ 13 comma 000 each month. times Beginning accounts receivable is $ 30 comma 000. times Beginning inventory is $ 22 comma 000. times Beginning accounts payable is $ 68 comma 000. ​(All from inventory​ purchases.) times Purchases are paid in full the following month. times Desired ending inventory is 25​% of next​ month's cost of goods sold​ (COGS). At the end of​ January, budgeted accounts receivable is​ ________.

Answer 1

$120,000

Step-by-step explanation:

The computation of the budgeted accounts receivable is shown below:

= Budgeted sales of January month × next month sales collection percentage

= $200,000 × 60%

= $120,000

We simply multiply the January accounts receivable with the next month collection sales percentage to find out the budgeted accounts receivable