Information pertaining to John Corporation’s sales revenue is presented in the following table:

Information pertaining to John Corporation’s sales revenue is presented in the following table:

                                         February              March               April

           Cash Sales             $160,000             $150,000           $120,000           Credit Sales             300,000               400,000             280,000               Total Sales         $460,000             $550,000            $400,000

 

Management estimates that 5% of credit sales are not collectible.  Of the credit sales that are collectible, 60% are collected in the month of sale and the remainder in the month following the sale.  Cost of purchases of inventory each month are 70% of the next month’s projected total sales.  ll purchases of inventory are on account; 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.

 

John’sbudgeted total cash receipts in April are: