Prepare a schedule for each month showing budgeted cash

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Question - Edwards Company has projected sales and production in units for the second quarter of the year as follows:

	Apr	May	June
Sales	30,000	20,000	25,000
Production	25,000	25,000	30,000

Assume that all units will be sold on account for $15 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale and the remaining 10% in the second month following the month of sale. Accounts receivable on March 31 totaled $255,000 $(45,000 from February's sales and the remainder from March.) Prepare a schedule for each month showing budgeted cash receipts for Edwards Company.

Reference no: EM132849091

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