### Budgeted Cash Receipts CalculationRugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April?#### Calculation:1. **March Collections:** - 25% of March sales collected in March: \[ 0.25 \times 400,000 = 100,000 \] - 75% of March sales collected in April: \[ 0.75 \times 400,000 = 300,000 \]2. **April Collections:** - 25% of April sales collected in April: \[ 0.25 \times 450,000 = 112,500 \]3. **Total Cash Receipts for April:** - Total collections in April from March and April sales: \[ 300,000 + 112,500 = 412,500 \]Thus, the budgeted cash receipts from sales on account for April amount to $412,500.

Bedgeted cash receipts on account of sale means cash received from debtor.

Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the moh following the sale. If sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April?

Rugged Bicycles, Inc. collects 25% of its sales on account in the month of the sale and 75% in the moh following the sale. If sales are budgeted to be $400,000 for March and $450,000 for April, what are the budgeted cash receipts from sales on account for April?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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