Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 32

Cash receipts budget Flagstaff Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:

Actual:
July	$73,500
August	78,750
Forecasted:
September	85,500
October	70,500
November	91,500
December	80,250

Based on past experience, it is estimated that 30% of a month’s sales are collected in the month of sale, 50% are collected in the month following the sale, and 18% are collected in the second month following the sale.

Required:

Calculate the estimated cash receipts for September, October, and November.