Posted: February 17th, 2016

calculate the amount of projected cash collections: Show solutions and related details.

Statues Inc. has the following sales budget for the second of the current year:

April May June Total Budgeted sales $250,000 $340,000 $590,000 $1,180,000 From past experience the company has learned that 10% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled 0,000 and March Sales totaled 0,000.

For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.

A. April
B. May
C. June