The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May $...
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The sales budget for Andrew Inc. is forecasted as follows: Month Sales Revenue May $ 170,000 June 210,000 July 230,000 August 170,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 50 percent in the month of sale. 25 percent in the month following sale. 20 percent in the second month following sale. 5 percent uncollectible. The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $34,000, of which $10,000 represents uncollected March sales and $24,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Andrew, Inc. Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Total Cash receipts: $Answer $Answer $Answer $Answer
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