Question
Alex Company has projected sales and production in units for the second quarter of the coming year as follows: April May June Sales units 55,000
Alex Company has projected sales and production in units for the second quarter of the coming year as follows:
April | May | June | ||
Sales units | 55,000 | 45,000 | 65,000 | |
Production units | 65,000 | 55,000 | 55,000 |
All units are sold on account for $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on April 1 totaled $540,000 ($200,000 from February's sales and the remainder from March). Required: Prepare a schedule for each month showing budgeted cash receipts for Alex Company.
Cash receipts: | ||||
April | May | June | ||
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Total receitps | $ (A) | $ (B) | $ (C) |
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