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Shown below are the budgeted sales for ABC Company for the next six months: Sales for...

Shown below are the budgeted sales for ABC Company for the next
six months:

                   Sales for Cash     Sales on Account
January               $27,000             $175,000 
February              $22,000             $162,000 
March                 $33,000             $214,000 
April                 $19,000             $148,000 
May                   $38,000             $222,000 
June                  $24,000             $171,000

On average, 11% of the sales on account are collected in the month
of sale, 42% are collected in the month following sale, 39% are
collected in the second month following sale, and the remaining
8% is collected three months after the month of sale.

Calculate the expected cash collections for April.
business   accounting   
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Answer #1

Cash collections for April

= 19000+(148000*11%)+(214000*42%)+(162000*39%)+(175000*8%)

=$202340

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