Nordic Company Balance Sheet March 31, 2020 Assets Cash $15,750 Accounts Receivable $84,000 Inventory $22,050 Buildings & equipment (net) $374,675 Total Assets $496,475 Liabilities & Owners' Equity Liabilities Accounts Payable Owners' Equity Capital Stock Retained earnings Total liab. & Owners' equity IMPORTANT instructions! When entering your answers, make sure you format them in WITHOUT the $. For example: Positive Numbers: 123,000 NOT $123,000. Negative Numbers: (123,000) NOT ($123,000) $32,025 $332,500 $131,950 $496,475 Clue #1- Sales Budget The marketing department has estimated sales in units as follows: March (actual) 21,000 April May June July 24,500 29,750 31,500 17,500 The selling price of each unit is $5. What are the total sales budgeted for the second quarter? Hide hint for Question 1 Hint #1: Sales are reported in dollars. Hint #2: How many months are in a quarter? Hint #3: Check figure: May sales. $148,750 Clue #2- Cash Collections Schedule Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. What is the expected amount of cash to be collected in June? (Hint: You may want to calculate April and May also to help you later in the race.) Hide hint for Question 2 Hint #1: Carefully consider the timing of the CASH payments. Hint #2: Organize the information into a complete schedule. Hint #3: Check figure: April collections $108,500 Clue #3- Accounts Receivable What is the budgeted accounts receivable amount for June 30th? Hide hint for Question 3 Hint #1: Differentiate between cash and credit sales. Hint #2: Think about WHEN credit sales are collected. (timing!) Hint #3: Check figure: Total Accounts Receivable May 31 - $119,000