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Question - AT&A has projected sales and production in units for the second quarter of the year as follows:
Sales
30,000 - april
20,000 - may
25,000 - june
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.)
Please schedule showing budgeted cash receipts for May for AT&T. (Hint: you will need to calculate March sales from March 31 Accounts Receivable). Show your work for any credit.
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