Problem 5 CLT Co. had forecasted sales as follows: -April...$406,000 May..$452,0

Question

Problem 5 CLT Co. had forecasted sales as follows: -April...$406,000 May..$452,000 -June ..$496,000 Sales are 30% credit and 70% cash. 50% ofthe credit sales are collected in the month of the sale, 30% in the month following the sale, and 20% in the following month. 400, 000 Total sales for the months of February and March were $956,090 with February having $500,000 enedft sales and March $400,000. Required: Prepare a sales budget schedule and a cash collections budget schedule for the months of April, May, and June

Explanation / Answer

Prepare sales budget :

Prepare cash collection budget :

April May June Cash sales 284200 316400 347200 Credit Sales 121800 135600 148800 Total Sales 406000 452000 496000

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