Answer:
$1,259,500
Explanation:
Expected cash Collections
:
April
= (April sales × 25%) + (March sales × 60%) + (February sales × 15%)
= (390,000 × 25%) + ($350,000 × 60%) + ($320,000 × 15%)
= $97,500 + $210,000 + $48,000
= $355,500
May
= (May sales × 25%) + (April sales × 60%) + (March sales × 15%)
= ($590,000 × 25%) + (390,000 × 60% ) + ($350,000 × 15%)
= $434,000
June
= (June sales × 25%) + (May sales × 60%) + (April sales × 15%)
= ($230,000 × 25%) + ($590,000 × 60%) + (390,000 × 15%)
= $470,000
Total sales collection for second quarter:
= $355,500 + $434,000 + $470,000
= $1,259,500
