Avril Company makes collections on sales according to the following schedule: 30% in the month of sale 66% in the month following sale 4% in the second month following sale The following sales have been are expected: Expected Sales January$130,000 February$150,000 March$140,000 Budgeted cash collections in March should be budgeted to be:

Question

Business

Carmelo Stephens

9 May, 12:20

Avril Company makes collections on sales according to the following schedule: 30% in the month of sale 66% in the month following sale 4% in the second month following sale The following sales have been are expected: Expected Sales January$130,000 February$150,000 March$140,000 Budgeted cash collections in March should be budgeted to be:

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Carl Morrow · Answer 1

Budgeted cash collections for March are $146200

Explanation:

Following the terms of the collection schedule, the budgeted cash collections for the month of March is expected to be as follows,

4% amount of January sales that is 0.04 * 130000 = $5200

66% amount of February's sales that is 0.66 * 150000 = $99000

30% amount of March's sales that is 0.3 * 140000 = $42000

Thus, the total budgeted cash collection for March will be,

Budgeted cash collection-March = 5200 + 99000 + 42000

Budgeted cash collections - March = 146200