Question

The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 56% in month following sale 4% in second month following sale The following sales have been budgeted: Sales April $ 150,000 May $ 160,000 June $ 150,000 Budgeted cash collections in June would be:

Answer 1

Budgeted cash collections in June would be: $155,600

Step-by-step explanation:

In The BRS Corporation:

Budgeted cash collections in June = 40% sales amount in June + 56% sales amount in May + 4% sales amount in April

Sales have been budgeted: in April: $150,000, in May: $160,000, in June: $150,000

Therefore, Budgeted cash collections in June = 40% x $150,000 + 56% x $160,000 + 4% x $150,000 = $60,000 + $89,600 + $6,000 = $155,600