Silver Company makes a product that is very popular as a Mother\'s Day gift. Thu
ID: 2379383 • Letter: S
Question
Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:April May June Total
Budgeted sales (all on account) $ 554,000 $ 840,000 $482,000 $ 1,876,000
--------------------------------------------------------------------------------
From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $436,000, and March sales totaled $526,000.
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
Explanation / Answer
April
May
June
2nd quarter
Collections from:
February sales
43,600
March sales
341,900
52,600
April sales
138,500
360,100
55,400
May sales
210,000
546,000
June sales
120,500
Total cash collected:
524,000
622,700
721,900
1,868,600
April
May
June
2nd quarter
Collections from:
February sales
43,600
March sales
341,900
52,600
April sales
138,500
360,100
55,400
May sales
210,000
546,000
June sales
120,500
Total cash collected:
524,000
622,700
721,900
1,868,600
Related Questions
Hire Me For All Your Tutoring Needs
Integrity-first tutoring: clear explanations, guidance, and feedback.
Drop an Email at
drjack9650@gmail.com
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.