Swifty/Neff, Ltd. personalizes scrapbooks for customers, using their digital pho

Question

Swifty/Neff, Ltd. personalizes scrapbooks for customers, using their digital photographs. Each scrapbook sells for $41. Swifty/Neff collects cash at the time of sale from 34% of customers. Of the remaining sales, 70% are collected in the month of sale and 30% are collected in the month following the sale. The sales budget for the first six months of the year is as follows:

Prepare Swifty/Neff's cash receipts budget for the second quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Calculate the accounts receivable balance at the end of second quarter.

January February March April May June Budgeted sales $132,400 $115,300 $114,400 $112,700 $119,900 $131,800

Explanation / Answer

Prepare Swifty/Neff's cash receipts budget for the second quarter

Account receivable balance at the end of second quarter = (131800*66%*30%) = 26096

April May June Quarter Cash sales 38318 40766 44812 123896 Collection from customer March sales 22651 22651 April sales 52067 22315 74382 May sales 55394 23740 79134 June sales 60892 60892 Total 113036 118475 129444 360955

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