Question

Avril Company makes collections on sales according to the following schedule: 55% in the month of sale 43% in the month following sale 2% in the second month following sale The following sales have been are expected: Expected Sales January $170,000 February $180,000 March $170,000 Budgeted cash collections in March should be budgeted to be:

Answer 1

$174,300

Step-by-step explanation:

According to Avril Company's sales collection schedule, budgeted cash collections in March should be 55% of March sales, 43% of February sales and 2% of January sales:

`C=0.55*170,000+0.43*180,000+0.02*170,000\\C=\$174,300`

Budgeted cash collections in March should be $174,300.