Franklin Corp.sells glass vases to various florists throughout the country.Each vase sells for $.50.The following sales forecast (in units)has been prepared for the first six months of 2009:
$$\begin{array} { l l }
\text { January } & 3000 \
\text { February } & 6000 \
\text { March } & 5000 \
\text { April } & 3000 \
\text { May } & 5000 \
\text { June } & 2000
\end{array}$$
Historically,the cash collection of sales has been as follows: 60 per cent in the month of sale,35 per cent in the month following sale,and 4 per cent in the second month following sale.The remaining 1 per cent is uncollectible.
Required: Prepare a cash receipts budget for the second quarter of 2009 (April through June).

Question

Franklin Corp.sells glass vases to various florists throughout the country.Each vase sells for $.50.The following sales forecast (in units)has been prepared for the first six months of 2009:
$$\begin{array} { l l } 
\text { January } & 3000 \
\text { February } & 6000 \
\text { March } & 5000 \
\text { April } & 3000 \
\text { May } & 5000 \
\text { June } & 2000
\end{array}$$ 
Historically,the cash collection of sales has been as follows: 60 per cent in the month of sale,35 per cent in the month following sale,and 4 per cent in the second month following sale.The remaining 1 per cent is uncollectible.
Required: Prepare a cash receipts budget for the second quarter of 2009 (April through June).

Quizplus · Accepted Answer

The Answer of Franklin Corp.sells glass vases to various florists throughout the country.Each vase sells for $.50.The following sales forecast (in units)has been prepared for the first six months of 2009:
$$\begin{array} { l l } 
\text { January } & 3000 \
\text { February } & 6000 \
\text { March } & 5000 \
\text { April } & 3000 \
\text { May } & 5000 \
\text { June } & 2000
\end{array}$$ 
Historically,the cash collection of sales has been as follows: 60 per cent in the month of sale,35 per cent in the month following sale,and 4 per cent in the second month following sale.The remaining 1 per cent is uncollectible.
Required: Prepare a cash receipts budget for the second quarter of 2009 (April through June).

Franklin Corp Historically,the Cash Collection of Sales Has Been as Follows: 60