Homework answers / question archive / Preparing a schedule of cash receipts Mansfield Imports, Inc

Preparing a schedule of cash receipts Mansfield Imports, Inc

Accounting

Share With

Preparing a schedule of cash receipts Mansfield Imports, Inc. sells goods imported from the Europe. Using the second quarter's sales budget, Stan Farrell is trying to complete the schedule of cash receipts for the quarter. The company had accounts receivable of $155,000 on April 1. Mansfield Imports normally collects 100 percent of accounts receivable in the month following the month of sale. May Sales April June Sales Budget Cash sales Sales on account $ 80,000 284,000 $ 90,000 250,000 $340,000 $100,000 240,000 $364,000 Total budgeted sales $340,000 Schedule of Cash Recelpts Current cash sales Plus: Collections from accounts receivable $255,000 $320,000 $374,000 Total budgeted collections Required a. Help Mr. Farrell complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on the quarterly pro forma balance sheet.