Cash receipts budget Kiel Center’s sales are all made on account. The firm’s collection experience has been that 35% of a month’s sales are collected in the month the sale is made, 55% are collected in the month following the sale, and 8% are collected in the second month following the sale. The sales forecast for the months of June through September is:
|
June |
$140,000 |
|
July |
160,000 |
|
August |
170,000 |
|
September |
195,000 |
Required:
Calculate the cash collections that would be included in the cash budgets for August and September.