Respuesta :
Answer and Explanation:
The preparation of the schedule of budgeted cash collections for three months is presented below:
Perrier, Inc.
Schedule of Budgeted Cash Collections
Quarterly by Months
Particulars May June July Total
Budgeted Sales($) 100,000 180,000 200,000 480,000
Collections:
60 percent in the month of sale($) $60,000 $108,000 $120,000 288,000
Less: 1 % discount for payment in month of sale ($600) ($1,080) ($1,200) ($2,880)
Net Cash inflow in the month of sale($) 59,400 106,920 118,800 285,120
20 percent in the month following sale($) 10,500 20,000 36,000 66,500
15 percent in the second month following sale($) 6,000 7,875 15,000 28,875
Net Cash collection during the month ($) 75,900 134,795 169,800 380,495
Working Notes
For April:
Uncollected Sales Revenue = $ 21,000
Total Sales Revenue for April = 21,000 ÷ 40% = $ 52,500
40% represent the uncollected sales
20 percent in the following month sale for April
= 52,500 × 20%
= $ 10,500
15 percent in the following second month sale for March
= 52,500 × 15%
= $7,875
For March:
Uncollected Sales Revenue = $8,000
Total Sales Revenue for April = 21,000 ÷ 20% = $40,000
15 percent in the following second month sale for April
= 40,000 × 15%
= $6,000
