Suppose a lumber yard has the following data:

times	Accounts receivable, May 31: (0.30 x May sales of $360,000)= $108,000
times	Monthly forecasted sales: June $432,000; July $448,000; August, $504,000; September, $ 535,000

Sales consist of 70 % cash and 30 % credit. All credit accounts are collected in the month following the sales. Uncollectible accounts are negligible and may be ignored.

Requirement

1. Prepare a sales budget schedule and a cash collections budget schedule for June, July,and August.

	June	July	August
Credit Sales
Cash Sales
Total Sales