1. Prepare a cash budget given the following data:

Budgeted sales for:

April 25,000 units

May 70,000 units

June 50,000 units

The selling price is $25 per unit.

	April	May	June	Quarter
Budgeted sales in units	25,000	70,000	50,000	145,000
Selling price per unit	25	25	25	25
Total budgeted sales	625,000	1,750,000	1,250,000	3,625,000

All sales are on account

60% collected in the month of the sale

40% collected in the month following the sale

In April, the 31 March accounts receivable balance of $45,000 will be collected in April.

Expected Cash Collection: Construct a cash collection schedule for April, May, June and a total for the Quarter.

	April	May	June	Quarter
A/R 31 March	45,000			45,000
April Sales
May Sales
June Sales
Totals