Shown below are budgeted sales for Betty DeRose, Inc.: Budgeted Sales in Units J

Question

Shown below are budgeted sales for Betty DeRose, Inc.: Budgeted Sales in Units January 6,900 units February 4,200 units March 5,500 units April 7,300 units May 6,100 units All sales are made on account. The selling price is $20 per unit. The sales are collected in the pattern 25% in the month of sale, 35% in the month after sale, 30% in the second month following sale, and the final 10% is collected in the third month following sale. Calculate the total expected cash collections for the month of April. Do not use decimals in your answer.

Explanation / Answer

Sales Collection Months Month of Sale Sale Units Sales (units x 20) January February March April January                              6,900                         138,000          34,500          48,300          41,400            13,800 February                              4,200                           84,000          21,000          29,400            25,200 March                              5,500                         110,000          27,500            38,500 April                              7,300                         146,000            36,500 Total                           23,900                         478,000          34,500          69,300          98,300          114,000 25% 35% 30% 10% January 34500 48300 41400 13800 February 21000 29400 25200 8400 March 27500 38500 33000 11000 April 36500 51100 43800 14600

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