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Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:
April May June TotalBudgeted sales (all on account) $ 554,000 $ 840,000 $482,000 $ 1,876,000
From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $436,000, and March sales totaled $526,000.prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.
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