Question

"70% of pitktin corp sales collected in the month of sale 20% in the month following sale and 10% in the second month following sale the following are budgeted sales data for the company: Jan (200,000) Feb (300,000) Mar( 350,00) April (250,000)

Total budgeted cash collection in april would be":_____

Answer 1

To calculate April's budgeted cash collections for Pitktin Corp, apply the sales collection percentages to the sales amounts of February, March, and April. The total budgeted cash collections for April would be $275,000.

Step-by-step explanation:

You are asking about how to calculate budgeted cash collections for Pitktin Corp for the month of April, given the percentages of sales collected in different months and the budgeted sales data.

To calculate this, we need to apply the percentages to the relevant months' sales.

For April's budgeted cash collections, we include:

• 70% of April sales
• 20% of March sales
• 10% of February sales

Now let's do the calculations with the given data:

1. April sales: $250,000 x 70% = $175,000
2. March sales: $350,000 x 20% = $70,000
3. February sales: $300,000 x 10% = $30,000

Adding these up gives:

$175,000 from April sales + $70,000 from March sales + $30,000 from February sales = $275,000

Therefore, the total budgeted cash collections in April would be $275,000.