The Fraley Corporation, a merchandising firm, has planned the following sales for the next four months: Sales are made 40% for cash and 60% on account.From experience, the company has learned that a month's sales on account are collected according to the following pattern: The company requires a minimum cash balance of $4, 000 to start a month.
Required:
a.Compute the budgeted cash receipts for June.
b.Assume the following budgeted data for June:

Question

The Fraley Corporation, a merchandising firm, has planned the following sales for the next four months:  Sales are made 40% for cash and 60% on account.From experience, the company has learned that a month's sales on account are collected according to the following pattern:  The company requires a minimum cash balance of $4, 000 to start a month.
Required:
a.Compute the budgeted cash receipts for June.
b.Assume the following budgeted data for June:

Quizplus · Accepted Answer

The Answer of The Fraley Corporation, a merchandising firm, has planned the following sales for the next four months:  Sales are made 40% for cash and 60% on account.From experience, the company has learned that a month's sales on account are collected according to the following pattern:  The company requires a minimum cash balance of $4, 000 to start a month.
Required:
a.Compute the budgeted cash receipts for June.
b.Assume the following budgeted data for June:

The Fraley Corporation, a Merchandising Firm, Has Planned the Following