Estimate Cash Collections
Nassau Products is preparing a cash budget for April. The following information on accounts receivable collections is available from past collection experience:
|
Percent of current month's sales collected this month
|
25%
|
|
Percent of prior month's sales collected this month
|
62
|
|
Percent of sales two months prior to current month collected this month
|
7
|
|
Percent of sales three months prior to current month collected this month
|
4
|
The remaining 2 percent is not collected and is written off as bad debts. Credit sales to date are:
|
April-estimated
|
$300,000
|
|
March
|
270,000
|
|
February
|
240,000
|
|
January
|
285,000
|
Required
What are the estimated cash receipts from accounts receivable collections in April?