Question

11.

Honda Company's budgeted sales for the next five months are
given below (assume all sales are made on account):

             Budgeted Sales
January         $155,000                        
February        $272,000
March           $???????
April           $180,000
May             $235,000

Honda Company's sales are collected in the pattern:

22% collected in the month of sale
35% collected in the month following sale
27% collected in the second month following sale
16% collected in the third month following sale

Honda Company's budgeted accounts receivable at April 30 was
$330,980.

Calculate Judge Company's budgeted cash collections for May.

please label your answer as answer=...................

Answer 1

Judge Company's budgeted cash collections for May = $ 2,50,560

Outstanding as on April = $3,30,980

Feb sale 16% + March sales 43% + April sales 78% = 3,30,980

43,520 + March Sales 43% + 1,40,400 = 3,30,980

March Sales 43% = 3,30,980 - 1,40,400 - 43,520

March Sales 43% = $1,47,060

Therefore March Sales = $1,47,060 / 43% = $3,42,000

Sales Month / Collection Month	Sales	January	February	March	April	May	June	July	Aug
January	155,000.00	34,100.00	54,250.00	41,850.00	24,800.00
February	272,000.00		59,840.00	95,200.00	73,440.00	43,520.00
March	342,000.00			75,240.00	119,700.00	92,340.00	54,720.00
April	180,000.00				39,600.00	63,000.00	48,600.00	28,800.00
May	235,000.00					51,700.00	82,250.00	63,450.00	37,600.00
						250,560.00