**Benton Company's Sales Budget Analysis****Sales Data**The table below shows Benton Company’s sales budget, detailing the expected total sales for each month:| Month | Sales ||-----------|------------|| January | $17,000 || February | $21,000 || March | $26,000 || April | $49,000 |**Credit Sales Collection Assumptions**- The company anticipates that 80% of its sales will be on account (credit sales).- Credit sales are collected as follows: - 25% in the month of sale. - 69% in the month following the sale. - The remainder is considered uncollectible and written off.**Calculation Task**: Determine the total cash receipts during April.**Multiple Choice Options**- $21,165- $35,200- $33,952- $25,725To solve this, the calculation would involve determining 25% of April’s credit sales and adding it to 69% of March’s credit sales. Remember, only 80% of total sales each month are credit sales.

Cash Budget : Cash Budget is prepared to analyze the cash transaction or cash flow of the business. Non-cash items do not result in the inflow/outflow of cash. Thus these items are not presented in the cash budget.Particulars Amount Cash Sales for April ($49,000 * (1 - 0.80) $9,800 Collection from credit sales of April ($49,000 * 80% * 25%) 9,800 Collection from credit sales of March ($26,000 * 80% * 69%) 14,352 Total cash receipts during April $33,952

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Benton Company's sales budget shows the following expected total sales: Month Sales January $17,000 February $21,000 $26,000 $49,000 March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 69% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: Multiple Choice O O O $21,165. $35,200. $33,952. $25,725.

Benton Company's sales budget shows the following expected total sales: Month Sales January $17,000 February $21,000 $26,000 $49,000 March April The company expects 80% of its sales to be on account (credit sales). Credit sales are collected as follows: 25% in the month of sale and 69% in the month following the sale, with the remainder being uncollectible and written off. The total cash receipts during April would be: Multiple Choice O O O $21,165. $35,200. $33,952. $25,725.

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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