What is the expect cash to be collected in may

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Reference no: EM131736301

Problem - The following is the sales budget for the given months of Welco, Ltd.:


Cash Sales

Credit Sales

May

$59,000

$283,000

June

$43,000

$236,000

July

$33,000

$205,000

August

$47,000

$268,000

September

$46,000

$197,000

Additional information to be used determining the expected cash collections each month that will be used in preparing the cash budget:

Collections on Credit sales:

50% in month of sale

20% in month following sale

30% in second month following sale

The Accounts Receivable balance on May 1 was $53,000. Of this amount, $41,000 represented uncollected April sales and $12,000 represented uncollected March sales.

Part 1: What is the expect cash to be collected in May?

Part 2: The budgeted Accounts Receivable on September 1 would be:

  • $195,500
  • $202,900
  • $178,900
  • $224,900
  • $173,300

Reference no: EM131736301

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