Question

The brs corporation makes collections on sales according to the following schedule: 35% in month of sale 62% in month following sale 3% in second month following sale the following sales have been budgeted: sales april $ 140,000 may $ 160,000 june $ 150,000 budgeted cash collections in june would be: multiple choice

O $155,900
O $150,000
O $150,420
O $151,700

Answer 1

The correct answer is $155,900, which is calculated by summing 35% of June sales, 62% of May sales, and 3% of April sales according to the corporation's collection schedule.

Step-by-step explanation:

The correct answer is option $155,900. To calculate the budgeted cash collections for June, we need to consider the collection schedule along with the sales for April, May, and June. Here is how the collections are determined:

• 35% of June sales: 0.35 × $150,000 = $52,500
• 62% of May sales: 0.62 × $160,000 = $99,200
• 3% of April sales: 0.03 × $140,000 = $4,200

Adding these amounts gives us the total collections in June: $52,500 (June sales) + $99,200 (May sales) + $4,200 (April sales) = $155,900.

To determine the budgeted cash collections in June, we need to calculate the collections for each month and sum them up.

In April, the collection is 35% of $140,000 which is $49,000.

In May, the collection is 62% of $160,000 which is $99,200.

In June, the collection is 3% of $150,000 which is $4,500.

Adding these collections together, we get $49,000 + $99,200 + $4,500 = $152,700.

Therefore, the budgeted cash collections in June would be $150,420.