Final Exam X G calculator-Google search X New Tab ezto.mheducation.com/hm.tpx 90

Question

Final Exam X G calculator-Google search X New Tab ezto.mheducation.com/hm.tpx 90% Search Silver Company makes a product that is very popular as a Mother's Day gi. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter gven below April $350,000 May $550.000 Total $1,090,000 Budgeted sales (all on account) SI 90,000 From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $280,000, and March sales totaled 5310,000. 1. Prepare a schedule of expected cash collecions from sales, by month and in total, for the second quarter. April May June Total February sales March sales April sales May sales June sales Total cash collections $ 350,000 550,000 190,0001,090,000 350,000550,000 190,000| $ 1,090,000 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date May sales sales Total accounts recevable at June 30 1:46 PM Ask me anything 12/17/2017

Explanation / Answer

April May June Total February sales 14000 14000 March sales 217000 15500 232500 April sales 87500 245000 87500 420000 May sales 137500 385000 522500 June sales 47500 47500 Total cash collections 318500 398000 520000 1236500 2 May sales 27500 =550000*5% June sales 142500 =190000*75% Accounts Receivable 170000

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