Question

Schedule of Cash Collections: Booth Ltd. makes collections on all sales according to the following schedule:

25% in month of sale
75% in month following sale

The following is a list of budgeted sales for the next four quarters:
1st quarter 2nd quarter 3rd quarter 4th quarter
Budgeted Sales $250,000 $240,000 $260,000 $280,000

Required:
Calculate the budgeted cash collections in the 2nd quarter.

Answer 1

B-More products were sold in the 1st quarter than in the 4th quarter.

Step-by-step explanation:

I got it right on Edge2020

Answer 2

$247,500

Step-by-step explanation:

Budgeted cash collection

Amount

Cash collected from 2nd quarter sales $60,000

(240,000*25%)

+ Cash collected from 1st quarter sales $187,500

(250,000*75%)

Budgeted cash collection in 2nd quarter $247,500