Cash receipts budget Fox Trail Center's sales are all made on account. The firm's collection experience has been that 30% of a month's sales are collected in the month the sale is made, 50% are collected in the month following the sale, and 18% are collected in the second month following the sale. The sales forecast for the months of May through August is as follows:

May ................. 5240,000

June .................. 280,000

July .................. 303,000

August ............. 350,000

Required:

Calculate the cash collections that would be included in the cash budgets for July and August.

Answer rating: 100% (QA)

The cash collections budget is used to determine the cash collections in a month with respect to ... View the full answer