Question

The brs corporation makes collections on sales according to the following schedule:

45% in month of sale
53% in month following sale
2% in second month following sale

the following sales have been budgeted:
sales
april: $220,000
may: $150,000
june: $140,000

budgeted cash collections in june would be:
a. $146,900
b. $140,000
c. $140,440
d. $142,500

Answer 1

Budgeted cash collections for BRS Corporation in June amount to $146,900, considering 45% of June sales, 53% of May sales, and 2% of April sales. Therefore, the correct option is A.

Step-by-step explanation:

The BRS Corporation collects on sales using a specific schedule. To calculate budgeted cash collections for June, one must take into account the collections from the sales of the months of April, May, and June according to their respective collection percentages. Here's the breakdown:

• 45% of June sales
• 53% of May sales
• 2% of April sales

For June sales worth $140,000, the collections are:

June sales: $140,000 * 45% = $63,000

For May sales of $150,000:

May sales: $150,000 * 53% = $79,500

And for April sales of $220,000:

April sales: $220,000 * 2% = $4,400

Adding these amounts gives us the total budgeted cash collections for June.

Total budgeted cash collections for June: $63,000 (from June) + $79,500 (from May) + $4,400 (from April) = $146,900

Therefore, the correct answer is $146,900, which corresponds to option A.