Reference no: EM132746488

The KRIS Company, a merchandising firm, has planned the following sales for thenext four months:

                                            March           April           May          June 

Total budgeted sales .......... $50,000        $70,000          $90,000  $60,000

Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern:

Month of sale ......................................................... 70%

First month following month of sale ..................... 20%

Second month following month of sale ................. 8%

Uncollectible ......................................................... 2%

The company requires a minimum cash balance of $4,000 to start a month.

Required:

Problem a. Compute the budgeted cash receipts for June.