Emily Company has sales on account and sales for cash. Specifically, 60% of its

Question

Emily Company has sales on account and sales for cash. Specifically, 60% of its sales are on account and 40% 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 on April 1 is $300,000.
Prepare a schedule of budgeted cash receipts for April, May, and June. Emily Company has sales on account and sales for cash. Specifically, 60% of its sales are on account and 40% 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 on April 1 is $300,000.
Prepare a schedule of budgeted cash receipts for April, May, and June.

Explanation / Answer

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Please find the answer as follows:

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April May June Cash Sales 210000 214000 224000 Credit Sales Collected 300000 315000 321000 Total Budgeted Cash Receipts 510000 529000 545000

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