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Please look over the last problem for the week.

Duffy Corporation has prepared the following sales budget:

Month Cash Sales Credit Sales

May $16,000 $68,000

June 20,000 80,000

July 18,000 74,000

August 24,000 92,000

September 22,000 76,000

Management estimates that 5% of credit sales are not collectible and of the credit sales that are collectible, 60 % are collected in the month of sale and the remainder in the month following the sale.

Cost of purchases of inventory each month are 70% of the next months projected sales with 11 purchases of inventory are on account. 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.

What would the cash receipts be for June?