Madden Inc. has the following sales budget for the months indicated: January Feb

Question

Madden Inc. has the following sales budget for the months indicated: January February March April $250,000 200,000 230,000 220,000 10 Fixed Selling and Administrative Collections on account have been determined to follow the pattern below: 60% of sales collected in the month of sale 25% of sales collected in the month after the sale 12% of sales collected two months after the sale * * 3% of sales is uncollectible Cash collections for April would be: a. $219,800 b.$213,500 C c$226,400 d.$214,800 c C C (Ctr)

Explanation / Answer

Cash collections for April = (200000*12%)+(230000*25%)+(220000*60%)= $213500 Option B is correct

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