Skays Company has the following budgeted sales:

April May June July

Credit sales $ 380,000 340,000 390,000 420,000

Cash sales $ 85,000 75,000 85,000 80,000

The historical pattern of collection of credit sales is 40% in the month of sale, 50% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts.

Required:

1. What is the amount of cash expected to be collected in July?
2. What is the amount of the budgeted accounts receivable balance on May 31?

Question 6: (15 points)

Hes Company reports the following for the first quarter of 2014:

Sales $700

Fixed Administrative Expenses 110

Fixed Cost of Goods Sold 100

Fixed Selling Expenses 50

Variable Administrative expenses 30

Variable Cost of Goods Sold 220

Variable Selling Expenses 170

1. What was Hes