Question

"all of pocast corp sales on account 60% collected in month, 30% month following 10% second month following the following are budgeted sales data : Jan(700,000) Feb(500,000) (400,000) (600,000)

cash receipts in april are expected to be:____

Answer 1

To calculate the expected cash receipts in April, apply the given percentages to the budgeted sales data. The expected cash receipts in April are $600,000.

Step-by-step explanation:

To calculate the expected cash receipts in April, we need to apply the given percentages to the budgeted sales data. From the question, we know that 60% of sales on account are collected in the same month, 30% in the month following, and 10% in the second month following. Let's calculate the cash receipts for each month:

• January: 60% of $700,000 = $420,000
• February: 30% of $500,000 = $150,000
• March: 10% of $400,000 = $40,000
• April: $600,000 (no percentage applied)

Therefore, the expected cash receipts in April are $600,000.