On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections:
August sales (actual)............................$ 32,000
September sales (actual)......................$ 42,000
October sales (estimated)....................$ 12,000
November sales (estimated)................$ 62,000
December sales (estimated).................$ 52,000
Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter.
1. Budgeted collections from customers in October total:
a. $86,000.
b. $27,800.
c. $19,800.
d. $23,000.
2.Budgeted collections from customers in November total:
a. $116,000.
b. $51,000.
c. $45,000.
d. $40,800.
3.Budgeted collections from customers in December total:
a. $51,000.
b. $41,000.
c. $49,800.
d.$126,000.