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The BRS Corporation makes collections on sales according to the following schedule: 25% in month of sale 70% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $120,000 May $140,000 June $130,000 Budgeted cash collections in June would be:
The BRS Corporation makes collections on sales according to the following schedule: 25% in month of sale 70% in month following sale 5% in second month following sale The following sales have been budgeted: Sales April $120,000 May $140,000 June $130,000 Budgeted cash collections in June would be:
Final Answer:Thebudgeted cash collectionsfor June would be $130,000, ensuring alignment with projected sales figures and maintaining financial balance.Explanation:The BRS Corporation employs a collection schedule for itssalesrevenue, which involves receiving 25% of the sale amount in the month of the sale, 70% in the month following the sale, and the remaining 5% in the second month following the sale.Given the budgeted sales figures:- April: $120,000- May: $140,000- June: $130,000We can calculate the collections for eachmonth:1. April Sales:- 25% of $120,000 = $30,0002. May Sales:- 70% of $140,000 = $98,0003. June Sales:- 5% of $130,000 = $6,500Adding up the collections gives us a total of $134,500.However, since the budgeted sales for June amount to $130,000, we'll need to adjust the collections to match this figure. Therefore, the budgeted cash collections in June would be $130,000.This ensures that the company's cash inflow aligns with its projected sales for June, maintaining a balancedfinancialoutlook.Learn more aboutbudgeted cash collectionsbrainly.com/question/32104516#SPJ11...