D E F. G H 1 A B C 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 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 30% 10 In the month after the sales, the remaining 70% 11 The accounts receivable at March 31, 20 YY to be collected in Ap $250,000 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 May 19 $ 20 Cash sales 21 Credit sales 22 Total sales 23 24 Cash collection schedule April May 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 June $ Proforma I.S. Data $ Siddique, Salina: Relevant data to be reported in the budgeted Income Statement. Siddique, Salina: Total sales to be reported in the budgeted Income Statement (I.S.) for the second quarter, 20YY. June Proforma B.S. Data $ $ $ Siddique, Salina: Outstanding Accounts receivable as at June 30, 20YY to be reported in the budgeted Balance Sheet (B.S.) 33 D E F. G H 1 A B C 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 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 30% 10 In the month after the sales, the remaining 70% 11 The accounts receivable at March 31, 20 YY to be collected in Ap $250,000 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 May 19 $ 20 Cash sales 21 Credit sales 22 Total sales 23 24 Cash collection schedule April May 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 June $ Proforma I.S. Data $ Siddique, Salina: Relevant data to be reported in the budgeted Income Statement. Siddique, Salina: Total sales to be reported in the budgeted Income Statement (I.S.) for the second quarter, 20YY. June Proforma B.S. Data $ $ $ Siddique, Salina: Outstanding Accounts receivable as at June 30, 20YY to be reported in the budgeted Balance Sheet (B.S.) 33