Question

Assets Cash $ 68,400 Accounts receivable 35,600 Inventory 67,300 Buildings and equipment, net of depreciation 179,000 Total assets $ 350,300 Liabilities and Stockholders’ Equity Accounts payable $ 155,600 Common stock 70,000 Retained earnings 124,700 Total liabilities and stockholders’ equity $ 350,300 Budgeted Income Statements April May June Sales $ 191,000 $ 201,000 $ 221,000 Cost of goods sold 114,600 120,600 132,600 Gross margin 76,400 80,400 88,400 Selling and administrative expenses 16,900 18,400 21,400 Net operating income $ 59,500 $ 62,000 $ 67,0001. Calculate the expected cash collections for April, May, and June.

Answer 1

Answer:

The expected cash collections for April, May, and June is Net operating income $ 59,500, $ 62,000, $ 67,000 respectively.

Explanation:

If there're no other events such as late payments, return of good, recall of debts.... the cash collected is the net operating income (sales deducted cost of goods sold and all related expenses).