Question

Alex Company has projected sales and production in units for the second quarter of the coming...

Alex Company has projected sales and production in units for the second quarter of the coming year as follows:

April

May

June

Sales units

55,000

45,000

65,000

Production units

65,000

55,000

55,000

All units are sold on account for $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $540,000 ($200,000 from February's sales and the remainder from March).

Required:

Prepare a schedule for each month showing budgeted cash receipts for Alex Company.

Cash receipts:

April

May

June

Total receitps

$        (A)

$         (B)

$        (C)
Business   Accounting   
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