Total budgeted cash collections in April would be:
Understand the Problem
The question is asking for the total budgeted cash collections in April based on the given percentages of sales collected from previous months' budgeted sales data.
Answer
The total budgeted cash collections in April would be $275,000.
Answer for screen readers
The total budgeted cash collections in April would be $275,000.
Steps to Solve
- Calculate Cash Collections from April Sales
To find out how much will be collected from April sales, we take 70% of April's budgeted sales. [ \text{April Collections} = 0.70 \times 250,000 = 175,000 ]
- Calculate Cash Collections from March Sales
Next, we calculate how much will be collected from March sales in April. This is 20% of March's budgeted sales. [ \text{March Collections} = 0.20 \times 350,000 = 70,000 ]
- Calculate Cash Collections from February Sales
Finally, we calculate the cash collections from February sales, which is 10% of February's budgeted sales. [ \text{February Collections} = 0.10 \times 300,000 = 30,000 ]
- Total Cash Collections in April
Now, we sum up all these collections to find the total budgeted cash collections in April. [ \text{Total Collections in April} = \text{April Collections} + \text{March Collections} + \text{February Collections} ] [ \text{Total Collections in April} = 175,000 + 70,000 + 30,000 = 275,000 ]
The total budgeted cash collections in April would be $275,000.
More Information
This calculation helps in understanding cash flow management and budgeting for businesses. Knowing when cash will be available based on sales helps in planning expenses and investments.
Tips
- Forgetting to include all sources: Ensure all months contribute to the total collection for the current month.
- Calculation errors with percentages: Double-check the percentage application to sales figures.
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