Question

Problem #2 (show your work!!): 1. Avril Company makes collections on sales according to the following schedule 45% in the month of sale 50% in the month following sale 5% in the second month following sale The following sales have been are expected: January February March Expected Sales $160,000 $180,000 $170,000 Compute budgeted cash collections for March. Show all your work below

Answer 1

March credit sales collected in March ($170,000 × 40%)	$68,000
February credit sales collected in March ($180,000 × 55%)	$99,000
January credit sales collected in March ($160,000 × 5%)	$8,000
Total cash collections in March	$175,000