Question

Seventy percent of Pluto Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. All sales are on account. The following are budgeted sales data for the company:

Answer 1

$275,000

Step-by-step explanation:

month budgeted sales budgeted cash collections

January $200,000 $140,000

February $300,000 $210,000 + $40,000

March $350,000 $245,000 + $60,000 + $20,000

April $250,000 $175,000 + $70,000 + $30,000

the total budgeted cash collections for April = ($250,000 x 70%) + ($350,000 x 20%) + ($300,000 x 10%) = $175,000 + $70,000 + $30,000 = $275,000