Compute the cash receipts from budgeted sales

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Reference no: EM131821075

Budgeted sales for Pizza Land for the second quarter of the current year are as follows:

 

Budgeted Sales

April

$180,000 

May

 200,000

June

 160,000

The company collects 20 percent in the month of sale, 50 percent in the first month following the sale, and 29% percent in the second month following the sale.  1% of the budgeted sales is uncollectible.

Budgeted purchases for Katie Company for the second quarter of the current year are as follows:

 

Budgeted Purchases

April

$ 90,000

May

   80,000

June

  100,000

The company pays for 65 percent of its purchases in the month of purchase and 35 percent in the following month.

Required:  Fill in the partial cash budget below. You need to compute the cash receipts from budgeted sales collected in June and the cash disbursement from payment of purchases for June.  Do not use dollar signs, but do use a comma.

 

Budgeted Sales

June Cash Receipts

April

180,000

Blank 1

May

200,000

Blank 2

June

160,000

Blank 3  

 

Budgeted Purchases

June Cash Payments

April

90,000

Blank 4  

May

80,000

Blank 5  

June

100,000

Blank 6  

Reference no: EM131821075

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