Information pertaining to John Corporation’s sales revenue is presented in the following table:
|
February
|
March |
April |
||
|
Cash |
Sales |
$160,000 |
$150,000 |
$120,000 |
|
Credit |
Sales |
300,000 |
400,000 |
280,000 |
|
Total |
Sales |
$460,000 |
$550,000 |
$400,000 |
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month are 70% of the next month’s projected total sales. ll purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
John’s budgeted total cash receipts in April are