In the solution, why did they multiply for 1.03 for June and July? Where did the 1.03 come from? Please provide a precise answer. Thank you so much!

Question 3 (8 marks) Morrissey Law Firm has found from past experience that 20 percent of its service fees are for cash. The remaining 80 percent are on credit. An aging schedule for accounts receivable reveals the following pattern: a. Ten percent of fees on credit are paid in the month that service is rendered. b. Seventy percent of fees on credit are paid in the next month following legal service. c. Seventeen percent of fees on credit are paid in the second month following the legal service. d. Three percent of fees on credit are never collected. Fees on credit that have not been paid until the second month following performance of the legal service are considered overdue and are subject to a 3 percent late charge. Morrissey has developed the following forecast of total fees: May $230,000 June 250,000 July 240,000 August 240,000 September 290,000 Required: Calculate the total cash receipts for each of August and September. Solutions: Morrissey Law Firm Schedule of Anticipated Cash Receipts For August and September August September Cash fees.................". $ 48,000 $ 58,000 Received from sales in: June (0.8)(0.17)($250,000)(1.03)..... 35,020 July (0.8)(0.7)($240,000) .................. 134,400 (0.8)(0.17)($240,000)(1.03)..... 33,619.20 August (0.8)(0.1)($240,000).................414......' 19,200 (0.8)(0.7)($240,000)