Question

VJasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.

Answer 1

Answer:

                                              April             May              June

Cash Sales             30%    $157,500     $160,500      $168,000

Sales on account   70%    $367,500    $374,500      $392,000

                                          $525,000    $535,000     $560,000

                                        JASPER COMPANY

                                     Cash Receipts Budget

                                   For April, May and June

                                                                 April          May          June

Cash Receipts from:

Cash Sales                                         $157,500    $160,500   $168,000

Collection of accounts Receivable  $400,000   $367,500   $374,500

Total Cash Receipts                          $557,500   $528,000  $542,500