Question

Seventy percent of Pluto Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. All sales are on account. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be:

Answer 1

Answer:

Total= $275,000

Explanation:

Giving the following information:

Seventy percent of Pluto Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale.

The following are budgeted sales data for the company:

January= 200,000

February= 300,000

March= 350,000

April= 250,000

Cash collection for April:

April= 250,000*0.7= 175,000

From March= 350,000*0.2= 70,000

From Febraury= 300,000*0.10= 30,000

Total= $275,000