Estimated cash receipts budget

Get Fur Real Inc., a pet wholesale supplier, was organized on May $1.$ Projected sales for each of the first three months of operations are as follows:

Month Amount

May $$340,000$

June $450,000$

July $650,000$

All sales are on account. Sales on account are expected to be collected $58\%$ in the month of the sale, $37\%$ in the first month following the sale, and the remainder in the second month following the sale.

Prepare a schedule indicating cash collections from sales for May, June, and July.

GET FUR REAL INC.

Schedule of Collections from Sales

For the Three Months Ending July $31$

Line Item Description May June July

May sales on account:

Collected in May Collected in May

$197,200$

Collected in June Collected in June

$125,800$

Collected in July Collected in July

$65,000$

June sales on account:

Collected in June Collected in June

$261,000$

Collected in July Collected in July

$166,500$

July sales on account:

Collected in July Collected in July

$377,000$

Total cash collected $Total cash collected

$197,200$

$Total cash collected

$386,800$

$Total cash collected

$577,500$

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A schedule of collections from sales is prepared as a means of estimating cash receipts from cash sales and collections on account.

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