Eastern Corporation collects 10% in the second month following sale,55% in the month following sale and 35% of a month's sales in the month of sale.Budgeted sales for the upcoming four months are:

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

Question

Eastern Corporation collects 10% in the second month following sale,55% in the month following sale and 35% of a month's sales in the month of 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

B)
May Sales $150,000 × 10% = $15,00
June Sales 230,000 × 55% = 126,500
July Sales 180,000 × 35% = 63,000
Total $204,500

Eastern Corporation Collects 10% in the Second Month Following Sale,55