**Silver Company Sales Budget and Cash Collections Analysis**Silver Company develops a product with its peak sales occurring in May each year. The sales budget for the second quarter is detailed below:- **Budgeted Sales (all on account):** - April: $340,000 - May: $540,000 - June: $170,000 - **Total**: $1,050,000The sales collection strategy is as follows:- 20% of sales are collected in the sale month.- 75% are collected in the following month.- 5% are collected in the second month after the sale.- Bad debts are negligible and not considered in this scenario.Past sales data include:- February sales totaling $270,000.- March sales totaling $300,000.**Requirements:**1. **Prepare a cash collection schedule** for sales, analyzing month-by-month collections as well as the overall total for the second quarter.2. **Calculate the accounts receivable balance** on June 30th.**Schedule of Expected Cash Collections:**This table will be used to organize and compute the expected cash inflow from sales for the months specified:| | April | May | June | Total ||----------------------|-------|-----|------|-------|| February sales | | | | || March sales | | | | || April sales | | | | || May sales | | | | || June sales | | | | || **Total cash collections** | | | | |Complete the question by entering your calculations and analysis within the tabs provided.

CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April $ 340,000 May $540,000 Budgeted sales (all on account) The company estimates 20% of a month's sales are collected in the month of sale, another 75% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $270,000, and March sales totaled $300,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? February sales March sales April sales May sales June sales Total cash collections June $ 170,000 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total $ 1,050,000 Total

Silver Company makes a product with peak sales in May of each year. Its sales budget for the second quarter is given below: April $ 340,000 May $540,000 Budgeted sales (all on account) The company estimates 20% of a month's sales are collected in the month of sale, another 75% are collected in the month following sale, and the remaining 5% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $270,000, and March sales totaled $300,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. 2. What is the accounts receivable balance on June 30th? February sales March sales April sales May sales June sales Total cash collections June $ 170,000 Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter. Schedule of Expected Cash Collections April May June Total $ 1,050,000 Total

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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