Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next four months follow.

QS 22-24 Cash receipts budget LO P1

Scora, Inc., is preparing its master budget for the quarter ending March 31. It sells a single product for $50 per unit. Budgeted sales for the next four months follow.

  

	January		February		March		April
Sales in units	1,200		2,000		1,600		1,400

  

In addition, sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sale. The January 1 balance in accounts receivable is $15,000. Prepare a schedule of budgeted cash receipts for January, February, and March.

Explanation: Ending accts. receivable is 60% of sales. Cash sales is 40% of sales.