1-Schedule of Expect o Midwest Products is a wholesale distributor of leaf rakes

Question

1-Schedule of Expect o Midwest Products is a wholesale distributor of leaf rakes. Thus, peak sales occur year as shown in the company's sales budget for the third quartesr. ene in August of each uly August September Total TotalBudgetedSales-Is-600,0001 s- o From past experience, the company has 900,000 500,000 S 2,000,000 learned that 25% of a month's sales are collected in the month of sale, collected in the second totaled $500,000 and June sales totaled $570,000. another 60% are collected in the month following sale, and the remaining 15% are month following sale. Bad debts are negligible and can be ignored. May sales Required o Prepare a schedule of expected cash collections from sales, by month and in total, for the third o Assume that the company will prepare a budgeted balance sheet as of September 30. Compute quarter. the accounts receivable as of that date. Total September July August Sales June Sales Sales Sales Total Cash Collected

Explanation / Answer

1)schedule of expected cash collection

July August september Total May sales 75000 [500000*.15] 75000 June sales 342000 [570000*.60] 85500 [570000*.15] 427500 July sales 150000 [600000*.25] 360000 [600000*.60] 90000 [600000*.15] 600000 August sales 225000 [900000*.25] 540000 [900000*.60] 765000 september sales 125000 [500000*.25] 125000 Total cash collected 567000 670500 755000 1992500

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