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Budget question (Silver Companymakes a product that is very popular as a Mother?s Day gift)




Question;Please help with accting budget question;Silver Companymakes a product;that is very popular as a Mother?s Day gift. Thus, peak sales occur in May of;each year, as shown in the company?s sales budget for the second quarter;given below;April;May;June;Total;Budgeted;sales (all on account);$490,000;$690,000;$220,000;$1,400,000;From past experience, the;company has learned that 25% of a month?s sales are collected in the month of;sale, another 60% are collected in the month following sale, and the;remaining 15% are collected in the second month following sale. Bad debtsare negligible and;can be ignored. February sales totaled $420,000, and March sales totaled;$450,000.;Required;1.;Prepare a schedule of expected cash collections from;sales, by month and in total, for the second;quarter.;2.;Assume that the company will prepare a budgeted balance;sheet as of June 30. Compute the accounts receivable as of that date.


Paper#37591 | Written in 18-Jul-2015

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