Richards Corporation had the following budgeted sales for the first half of next

Question

Richards Corporation had the following budgeted sales for the first half of next year:

  

  

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

  

What is the budgeted accounts receivable balance on May 30?

Cash Sales Credit Sales   January $30,000        $130,000        February $35,000        $150,000        March $43,000        $110,000        April $48,000        $143,000        May $58,000        $180,000        June $60,000        $330,000     

Explanation / Answer

January February march April May June Credit sales 130000 150000 110000 143000 180000 330000 Collection in same month 50% 65000 75000 55000 71500 90000 165000 Next month 30% 34800 39000 45000 33000 42900 54000 Second Month 20% 15000 23200 26000 30000 22000 28600 126000 134500 154900 247600 Cash Collections 30000 35000 43000 48000 58000 60000 Total Collections 30000 35000 169000 182500 212900 307600 Accounts Receivable on May 30 20% of April 143000*20% 28600 50% of May 180000*50% 90000 Accounts Receivable 118600

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.