Distribution Corporation collects 40% of a month's sales in the month of sale,55% in the month following sale,and 5% in the second month following sale.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in July is budgeted to be

Question

Distribution Corporation collects 40% of a month's sales in the month of sale,55% in the month following sale,and 5% in the second month following sale.Budgeted sales for the upcoming four months are:

The amount of cash that will be collected in July is budgeted to be

Quizplus · Accepted Answer

C)
May Sales $150,000 × 5% = $7,500
June Sales 230,000 × 55% = 126,500
July Sales 180,000 × 40% = 72,000
Total $206,000

Distribution Corporation Collects 40% of a Month's Sales in the Month