estimated total cash collections 460193

Orion Corporation is preparing a cash budget for the six months beginning January 1. Shown below are the company’s expected collection pattern and the budgeted sales for the period.

Expected collection pattern:

65% collected in the month of sale

20% collected in the month after sale

10% collected in the second month after sale

4% collected in the third month after sale

1% uncollectible

Budgeted sales:

The estimated total cash collections during April from sales and accounts receivables would be:

$155,900

$167,000

$171,666

$173,400