Problem 4: Sales budget and Cash collection schedule Potter Inc. is preparing budget for the second quarter of 20YY. April sales are estimated to be $400,000 of which, $100,000 will be cash and $300,000 be sales on account. Potter expects sales to grow 10% per month. The company expects to collect its accounts receivable as follows: During the month of sales: 30% In the month after the sales, the remaining: 70% The accounts receivable at March 31, 20YY to be collected in Apri $250,000 Required: Use the tables below to prepare: Sales budget and Cash collection schedule for the second quarter. Solution: Sales budget Siddique, Salina: Relevant data to be reported in the budgeted Income Statement. April May $ $ June $ Proforma I.S. Data $ $ Cash sales Credit sales Total sales O Siddique, Salina: Total sales to be reported in the budgeted Income Statement (I.S.) for the second quarter, 20YY. Cash collection schedule April May $ June $ Proforma B.S. Data $ $ Receipt from cash sales Collection of: Current month's sales on account Previous month's sales on account Total cash receipts Siddique, Salina: Outstanding Accounts receivable as at June 30, 20YY to be reported in the budgeted Balance Sheet