Question: Your question is incomplete. Below is the complete question and the answer.
Shown below are the budgeted sales for ABC Company for the next six months:
Sales for Cash Sales on Account
January $15,000 $ 70,000
February $18,000 $ 80,000
March $14,000 $160,000
April $26,000 $120,000
May $18,000 $170,000
June $24,000 $105,000
On average, 35% of the sales on account are collected in the month of sale,
40% are collected in the month following sale, 10% are collected in the
second month following sale, and the remaining 15% is collected three months
after the month of sale.
1. Calculate the expected cash collections for April.
Answer:
The expected cash collections for April is $150,500
Explanation:
ABC Company
Expected cash collections for April
April cash collection
Cash sales $26,000
January sales collected April $10,500
70,000 x 15%
February sales collected in April $8,000
80,000 x 10%
March sales collected in April $64,000
160,000 x 40%
April sales collected in April $42,000
120,000 x 35%
Total cash collections $150,500
