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

Exercise 26

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.