Silver Company makes a product hat is very popular as a Mother\'s Day gift. Thus

Question

Silver Company makes a product hat is very popular as a Mother's Day gift. Thus, peak sales occur in May of each yeer, as shown in the company's saies budget for the second quater given below April May June Total Budgeted sales (ell on account 490,000 690,000 220,000 $1,400.000 cred ECO From past expe o ce, the compa has lea ed that 2 % c $420,000, and March sales totaled $450,000. mont a o es are colected in the month of saa, another 60% a e co o ted n te month fol ng sale and the remaining 15% are colected in the 50 nd month follo r Bale Bad de to are n i and can be ryalea totaled Required: . Propare a schedule of axpected cash colections from aaloa, by month and in total, for the socond quarter. of Expected Cash uary sales March sales Apnl sales ey sales June sales Total cash colections 2. Assume that the company wl prepare a budgeted balance sheet as of June 30. Compute e accounts recevable as of that date. June sales Total accounts receivable a June 30

Explanation / Answer

1 April May June Total February sales 63000 63000 March sales 270000 67500 337500 April sales 122500 294000 73500 490000 May sales 172500 414000 586500 June sales 55000 55000 Total cash collections 455500 534000 542500 1532000 2 May sales 103500 =690000*15% June sales 165000 =220000*75% Accounts receivable at June 30 268500

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