Gecko Company's budgeted monthly sales are as follows: April $220,000, May $260,000, June $190,000, and July $300,000. Sales are 70% cash and 30% on account. Gecko collects 40% of it accounts receivable in the month of the sale and 60% in the month following the sale. Cost of go sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's c of goods sold. All inventory purchases are paid 10% in the month of purchase and 90% in the Following month. What are Gecko's budgeted cash collections for the month of June? O $155,800

Cornerstones of Cost Management (Cornerstones Series)
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ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...
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Gecko Company's budgeted monthly sales are as follows: April $220,000, May $260,000, June
$190,000, and July $300,000. Sales are 70% cash and 30% on account. Gecko collects 40% of its
accounts receivable in the month of the sale and 60% in the month following the sale. Cost of goods
sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost
of goods sold. All inventory purchases are paid 10% in the month of purchase and 90% in the
following month. What are Gecko's budgeted cash collections for the month of June?
O $155,800
O $179,800
O $194,200
O $202,600
O None of the above
Transcribed Image Text:Gecko Company's budgeted monthly sales are as follows: April $220,000, May $260,000, June $190,000, and July $300,000. Sales are 70% cash and 30% on account. Gecko collects 40% of its accounts receivable in the month of the sale and 60% in the month following the sale. Cost of goods sold is budgeted at 75% of sales and ending inventory is budgeted at 20% of the next month's cost of goods sold. All inventory purchases are paid 10% in the month of purchase and 90% in the following month. What are Gecko's budgeted cash collections for the month of June? O $155,800 O $179,800 O $194,200 O $202,600 O None of the above
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