Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, an 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: January $60, 000 February $70,000 March $50,000 April $30, 000 Total Sales What would be the budgeted total cash receipts in April?

Cornerstones of Cost Management (Cornerstones Series)
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and
12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data:
February
April
$30,000
March
January
$60,000
Total Sales
$70,000
$50,000
What would be the budgeted total cash receipts in April?
Transcribed Image Text:Parlee Company's sales are 30% in cash and 70% on credit. Sixty percent of the credit sales are collected in the month of sale, 25% in the month following sale, and 12% in the second month following sale. The remainder is uncollectible. The following are budgeted sales data: February April $30,000 March January $60,000 Total Sales $70,000 $50,000 What would be the budgeted total cash receipts in April?
$36,230.
$27,230.
$47,900.
$38,900.
Transcribed Image Text:$36,230. $27,230. $47,900. $38,900.
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