The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 56% in month following sale 4% in second month following sale The following sales have been budgeted: Sales April $ 150,000 May $ 160,000 June $ 150,000 Budgeted cash collections in June would be: Multiple Choice A. $150,600 B. $149,600 C. $150,000 D. $155,600

Question

Business

Marques Conway

16 February, 08:17

The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 56% in month following sale 4% in second month following sale The following sales have been budgeted: Sales April $ 150,000 May $ 160,000 June $ 150,000 Budgeted cash collections in June would be: Multiple Choice A. $150,600 B. $149,600 C. $150,000 D. $155,600

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Answers (1)

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Robert Conrad · Answer 1

D. $155,600

Explanation:

The calculations of the budgeted cash collections are shown below:

= June sales * sale month collection percentage + May sales * following month collection percentage + April sales * second following month collection percentage

= $150,000 * 40% + $160,000 * 56% + $150,000 * 4%

= $60,000 + $89,600 + $6,000

= $155,600

Simply we multiplied the sales with the collection criteria