Final answer:
Budgeted cash collections for the BRS Corporation in June include 4% of April's sales, 66% of May's sales, and 30% of June's sales, which totals to $146,200 (option 4).
Step-by-step explanation:
The student has asked about calculating budgeted cash collections for the BRS Corporation for the month of June based on their schedule of collections. According to this schedule, the BRS Corporation collects 30% of sales in the month of the sale, 66% in the following month, and 4% in the second month following the sale. To answer this, we need to consider the sales from April, May, and June and apply the percentages for each of those months.
For April sales of $130,000, only the 4% collected in the second month following the sale is relevant to June:
- April Sales: $130,000 * 4% = $5,200
For May sales of $150,000, the 66% collected in the month following the sale is relevant to June:
- May Sales: $150,000 * 66% = $99,000
For June sales of $140,000, the 30% collected in the month of the sale applies:
- June Sales: $140,000 * 30% = $42,000
Adding these up:
Total Collection for June = April Sales Collection + May Sales Collection + June Sales Collection
Total Collection for June = $5,200 (from April) + $99,000 (from May) + $42,000 (from June) = $146,200
Therefore, the correct answer to the budgeted cash collections in June for BRS Corporation is $146,200, which corresponds to option A.