I need help with april and may sales (60%,30%,5%) in detail explanitation.
And on the right is the problem im working on if you could help with that too.
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CASA DEVELOPMENT INC
Expected Cash Receipts from Sales For the Quarter Ended June 30 April May
Current Attempt in Progress
June
Indigo Development, Inc. has budgeted sales revenues as follows:
February Sales Credit Sales March Sales Credit Sales ($90,000 * 80% * 30%), ($90,0 00 * 80% * 5%) April Sales Credit Sales (60%, 30%, 5%) Cash Sales ($80,000 * 20%) May Sales Credit Sales (60%, 30%) Cash Sales ($60,000 * 20%) June Sales Credit Sales ($35,000 * 80% * 60%) Cash Sales ($35,000 * 20%) Total cash receipts
$3,000
Budgeted Sales Revenues
$21,600
$3,600
January
$60,000
February
70,000
$38,400 $16,000
$19,200
$3,200
March
91,000
April
85,000
$28,800 $12,000
$14,400
May
67,000
June
34,000
$16,800 $7,000 $41,400
$79,000
$63,600
Past experience has indicated that 70% 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.
February credit sales = February sales * 80% * 5%
February credit sales = $75,000 80% 5% $3,000.00
Prepare a schedule which shows expected cash receipts from sales for the months of April, May, and June. (Do not leave any answer field blank. Enter O for amounts.)
