Answer:
Jasper Company
Cash Receipts Budget for April, May, and June:
April May June Total
Cash Sales 30% $157,500 $160,500 $168,000 $486,000
Credit Sales 70% 400,000 367,500 374,500 1,142,000
Total $557,500 $528,000 $542,500 $1,628,000
Explanation:
1. Cash Receipts Budget shows the estimated cash receipts from customers and other sources.
2. Calculations:
a) Cash Sales for April = 30% of April Sales = 30% * $525,000 = $157,500. The difference of 70% is received in May.
b) Sales received on account for April = 100% of Accounts Receivable = $400,000.
c) Cash Sales for May = 30% of April Sales = 30% * $535,000 = $160,500. The difference of 70% is received in June.
d) Cash Sales for June = 30% of April Sales = 30% * $560,000 = $168,000. The difference of 70% is received in July.
