Schedule of Cash Collections of Accounts Receivable

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

May $$510,000$

June $820,000$

July $1,440,000$

All sales are on account. Of sales on account, $52\%$are expected to be collected in the month of the sale, $39\%$in the first month following the sale, and the remainder in the second month following the sale.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. of Cash Collections of Accounts Receivable

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

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DATA

May $$510,000$

June $820,000$

July $1,440,000$

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All sales are on account. The percentage of sales on the account that will be collected for each month of sale is indicated below.

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DATA

Percentage of sales collected:

month of the sale $52\%$

$1$st month following the sale $39\%$

$2$nd month following the sale $9\%$

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REQUIRED:

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

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Using formulas and cell references from the problem data, perform the required analysis. Formulas entered in the green cells show in the orange cells. Transfer amounts to CNOWv$2$for grading.

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FUR FAMILY INC.

Schedule of Collections from Sales

For the Three Months Ending July $31$

$$May June July Formulas

May sales on account:

Collected in May

Collected in June

Collected in July

June sales on account:

Collected in June

Collected in July

July sales on account:

Collected in July

Total cash collected