Schedule of Cash Collections on Accounts Receivable and Cash BudgetRoybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:Percent paid in the month of sale20 Percent paid in the month after the sale55 Percent paid in the second month after the sale23 To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:April$228,000 May297,600 June312,000 July288,000 August360,000 Required:1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers. Roybal Inc.Schedule of Cash ReceiptsFor JulyPayments on account:From May credit sales:%From June credit sales:%From July credit sales:%Less: July cash discount%Cash receipts2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.Roybal Inc.Schedule of Cash ReceiptsFor AugustPayments on account:From June credit sales:$1%From July credit sales:%From August credit sales:%Less: August cash discount%Cash receipts

SOLUTION- CASH BUDGET- IT IS AN ESTIMATION OF THE CASH FLOWS FOR A BUSINESS OVER A SPECIFIC PERIOD…

Answered: Schedule of Cash Collections on…

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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Schedule of Cash Collections on Accounts Receivable and Cash Budget

Roybal Inc. sells all of its product on account. Roybal has the following accounts receivable payment experience:

Percent paid in the month of sale	20
Percent paid in the month after the sale	55
Percent paid in the second month after the sale	23

To encourage payment in the month of sale, Roybal gives a 2% cash discount. Roybal's anticipated sales for the next few months are as follows:

April	$228,000
May	297,600
June	312,000
July	288,000
August	360,000

Required:

1. Prepare a schedule of cash receipts for July. Be sure to enter percentages as whole numbers.

Roybal Inc.
Schedule of Cash Receipts
For July
Payments on account:
From May credit sales:
%
From June credit sales:
%
From July credit sales:
%
Less: July cash discount
%
Cash receipts
2. Prepare a schedule of cash receipts for August. Be sure to enter percentages as whole numbers.
Roybal Inc.
Schedule of Cash Receipts
For August
Payments on account:
From June credit sales:
$1
%
From July credit sales:
%
From August credit sales:
%
Less: August cash discount
%
Cash receipts

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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