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Longoria Company's sales budget shows the following expected total sales:
Month Sales
January $30,000
February $40,000
March $35,000
April $30,000
The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 30% in the month of sale, 68% in the month following the sale with the remainder being uncollectible and written off in the month following the sale.
Required.
Question a) Calculate budgeted accounts receivable at the end of each month from February through April.
Question b) Calculate budgeted cash inflows from collection of receivables for each month from February through April.
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