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Roswell Company has budgeted sales revenue as follows for the next 4 months as follows:
February
$150,000
March
$120,000
April
$105,000
May
$165,000
Past experience indicates that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 35% in the month following the sale, and 3% in the second month following the sale. The other 2% is uncollectible.
Prepare a schedule which shows expected cash receipts from sales for the month of May.
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