Continue the revised Smart Touch Learning illustration from Summary Problem 22-1. Recall that the fourth quarter sales are revised to 700 tablets with the expectation of increased holiday sales. Suppose a change in the receipt of sales on account is as follows: 60% in the month of the sale 20% in the month after the sale 19% two months after the sale 1% never collected

Requirements

 

The schedule of budgeted cash receipts  to include the increase in fourth quarter sales and the change in the timing of customer receipts. 

 

 How will the changes in cash receipts affect the cash budget?