Part 4:

Part 4 Schedule of Expected Cash Collections (30 points) Nicky Company makes Veterinary products. The company's sales budget for May and June are shown below: May June Total Budgeted Sales (all on account] $400,000 $300,000 $ 700,000 From past experience, the company has learned that 60% of a month's sales are collected in the month of sale, another 30% are collected in the month following sale, and the remaining 10% are NOT collected, but they remain in the company's accounting records. April sales totaled $200,000. Required 1. In good form, prepare a schedule of expected cash collections from Sales for May, June and the two-month total. Show work to receive full credit. 2. What is the account receivable balance on June 30th? Show work to receive full credit. Requirement 1. Nicky Company Expected Cash Flows for the months of May June Total Relating to Sales of the Month of: Requirement 2. Balance of Accounts Receivable on June 30th