Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:
April May June Total
Budgeted sales (all on account) $ 552,000 $ 856,000 $471,000 $ 1,879,000
From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $432,000, and March sales totaled $528,000.
rev: 02-17-2011
1.value:
10 points
Requirement 1:
Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. (Round your answer to the nearest dollar amount. Leave no cells blank - be certain to enter "0" wherever required. Omit the "tiny_mce_markerquot; sign in your response.)
April May June Total
February sales $ $ $ $
March sales
April sales
May sales
June sales