3 Potter Inc. is preparing budget for the second quarter of 20YY. 4 April sales are estimated to be $400,000 of which, 5 $100,000 will be cash and $300,000 be sales on account. 6 Potter expects sales to grow 10% per month. 8 The company expects to collect its accounts receivable as follows: 9 During the month of sales: 10 In the month after the sales, the remaining: 11 The accounts receivable at March 31, 20YY to be collected in April: 30% 70% $250,000 12 13 Required: 14 Use the tables below to prepare: 15 Sales budget and Cash collection schedule for the second quarter. 16 17 Solution: April 24 18 Sales budget May June Proforma I.S. Data 19 24 2$ 2$ 20 Cash sales 21 Credit sales 22 Total sales 23 April 24 24 Cash collection schedule May June Proforma B.S. Data 25 26 Receipt from cash sales 27 Collection of: 24 2$ $ 28 Current month's sales on account 29 Previous month's sales on account 30 Total cash receipts 31