Orion Corp is preparing a cash budget for the six months beginning 01 January. Shown below are
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Question:
Expected collection pattern:
65% collected in the month of sale
20% collected in the month after the sale
10% collected in the second month after the sale
4% collected in the third month after the sale
Budgeted Sales:
January $160,000
February $185,000
March $190,000
April $170,000
May $200,000
June $180,000
What would be the estimated total cash collection during April from sales accounts receivables?
Jan Feb Mar Apr May June
Sales 160,000 185,000 190,000 170,000 200,000 180,000
Related Book For
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett
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