Suppose a lumber yard has the following data . Accounts receivable, May 31: (0.2

Question

Suppose a lumber yard has the following data . Accounts receivable, May 31: (0.20 x May sales of $359,000) $71,800 . Monthly forecasted sales: June, $433,000; July, $445,000; August, $507,000; September, $538,000 Sales consist of 80% cash and 20% credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored Requirement 1. Prepare a sales budget schedule and a cash collections budget schedule for June, July, and August. Requirement 1. Prepare a sales budget schedule for June, July, and August. Sales budget June July August Credit sales Cash sales Total sales Prepare a cash collections budget schedule for June, July, and August. Cash collections budget June July August Cash sales this montih 100% of last months credit sales Total collections from customers Enter any number in the edit fields and then continue to the next question

Explanation / Answer

Sales budget :

Cash collection budget :

June July August Credit sales 86600 89000 101400 Cash sales 346400 356000 405600 Total sales 433000 445000 507000

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