B D E F 1 Problem 4: Sales budget and Cash collection schedule 2 3 Potter Inc. is preparing budget for the second quarter of 20YY. 4 April sales are estimated to be $400,000 of which, 5 $100,000 will be cash and $300,000 be sales on account. 6 Potter expects sales to grow 10% per month. 7 30% 70% $250,000 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 10 In the month after the sales, the remaining: 11 The accounts receivable at March 31, 20YY to be collected in April: 12 13 Required: 14 Use the tables below to prepare: 15 Sales budget and Cash collection schedule for the second quarter. 16 17 Solution: 18 Sales budget April Siddique, Relevant da Statement. May $ June $ Proforma I.S. Data $ 19 $ 20 Cash sales 21 Credit sales 22 Total sales Siddiqu Total sale (LS.) for 23 April May June $ Proforma B.S. Data $ $ $ 24 Cash collection schedule 25 26 Receipt from cash sales 27 Collection of: 28 Current month's sales on account 29 Previous month's sales on account 30 Total cash receipts 31 32 33 34 Siddique, Sal Outstanding Ac reported in the