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Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: May $410,000 $610,000 $210,000 June Total $1,230,000 Budgeted sales (all on account) From past experience, the company has learned that 25% of a month's sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $340,000, and March sales totaled $370,000 Required 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarten Silver Company Schedule of Expected Cash Collections April May June Total February sales March sales April sales May sales June sales Total cash collections 51,000 277,500 410,000 518,500 52,500 $375,500 454,000$480,000$ 1,309,500 51000 222,000 102,500 55,500 246,000 152,500 61,500 366,000 52,500 2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date Silver Company Accounts receivable at June 30 $ 91,500 157,500 249 000 May sales June sales

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