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Shown below are the budgeted sales for ABC Company for the next six months: Sales for...

Shown below are the budgeted sales for ABC Company for the next six months:

                   Sales for Cash     Sales on Account 
January               $15,000             $ 70,000
February              $18,000             $ 80,000
March                 $14,000             $160,000
April                 $26,000             $120,000
May                   $18,000             $170,000
June                  $24,000             $105,000

On average, 35% of the sales on account are collected in the month of sale,
40% are collected in the month following sale, 10% are collected in the
second month following sale, and the remaining 15% is collected three months
after the month of sale.

Calculate the expected cash collections for April.
Business   Accounting   
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Answer #1

Caclualtion of cash collected in every month -

Therefore Expected cash collection in April = Cash sales + credit sales collected in april

=26000 +124500

= $150500

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