Eckart’s Runners Inc. has the following data:
Accounts receivable, May 31: (0.3 x May sales of $400,000) = $120,000.
Monthly forecasted sales: June, $400,000; July, $440,000; August,
$500,000; September, $530,000.
Sales consist of 70 percent cash and 30 percent credit. All credit accounts
are collected in the month following the sales. Uncollectible accounts are negligible
and may be ignored.
Prepare a sales budget schedule and a cash collections budget schedule for
June, July, and August.