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Tema [17]
3 years ago
14

Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If

sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April?
Business
1 answer:
damaskus [11]3 years ago
5 0

Answer:

$412,500

Explanation:

March

Cash receipts from sales on account for April = $400,000 * 75%

Cash receipts = $300,000

April

Cash receipts from sales on account for April = $450,000 * 25%

Cash receipts = $112,500

Total Cash receipts = Cash receipts from sales on account from March + Cash receipts from sales on account from April

Total Cash receipts = $300,000 + $112,500

Total Cash receipts = $412,500

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