Calculate and prepare the cash inflow budget for the may

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Question - The company is preparing their budgets for the second quarter. The forecasted sales budgets are detailed below.

April $303,000

May $327,000

June $348,000

40% of the sales are paid in cash and the remaining is paid bought on account. Based on past experience, 60% of the credit accounts are collected in the month of sale, 30% in the month following the sale, and 10% in the next following month. The accounts receivable balance is $97,000 at the beginning of April and consists of:

$17,000 --> 10% of February credit sales, which were $170,000 in total.

$80,000 --> 40% of March credit sales, which were $200,000 in total.

Required - Calculate and prepare the cash inflow budget for the month of May.

Reference no: EM132898619

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