Casa Development, Inc. has budgeted sales revenues as follows: Budgeted Sales Revenues January $55,000 February 75,000 March 90,000 April 80,000 May 60,000 June 35,000 Past experience has indicated that 80% of sales each month are on credit and that collection of credit sales occurs as follows: 60% in the month of sale, 30% in the month following the sale, and 5% in the second month following the sale. The other 5% is uncollectible. Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June.

Expected cash receipts from sales for the months of April, May, and June are  63,000 ,51,600 and 34,400

Explanation:

As you can see we apply the percentages of collection of 60%, 30% and 5% to each month credit sales  to get the total estimated cash collections.

Casa Development, Inc.

Budgeted Cash Schedule

               January   February      March     April        May        June

Revenues $55,000  75,000    90,000   80,000  60,000     35,000

Credit Sales  80%

Credit Sales  44000  60,000   72,000  64,000   48,000      28,000

Collections    60%          30%             5%

January

44000           26,400   13,200    2,200

Feb                               60%          30%             5%

60,000                         36000    18000         3000

Mar                                                   60%          30%             5%

72,000                                         43,200        21,600      3600

Apr                                                                    60%          30%             5%

64000                                                            38400         19200       3,200

May                                                                                    60%          30%            

48,000                                                                              28,800    14,400

June                                                                                                      60%

28,000                                                                                               16,800

Total Cash Collections                             63,000      51,600       34,400

answer; depth;

answer; blank(1); /rises; blank(2); //increases;