Question

The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 56% in month following sale 4% in second month following sale The following sales have been budgeted: April May June Sales $150,000 $170,000 $160,000 Budgeted cash collections in June would be:

Answer 1

BRS CORPORATION CASH COLLECTION
	April                   $	May                          $	Jun                                $
Sales on April	60000	84000	6000
	($150000 X 40 %)	($150000 X 56%)	($150000 X 4%)
Sales on May		68000	95200
		($170000 X 40%)	($170000 X 56%)
Sales on Jun			64000
			($160000 X 40%)
Total cash collection	60000	152000	165200
Budgeted cash collection in jun is $165200