Note that data typically changes for each new question, even when the same company or product name is used. Cromwell Company is a distributor that sells products to retail companies. The company sells one product for $200 per unit. Cromwell pays $120 to buy the product. Cromwell wishes to maintain an inventory at the end of each month equal to 30% of the next month's projected sales. Purchases are paid in the month after purchase. Cromwell makes all sales on credit and collects 40% in the month of sale and 60% in the month after sale. Budgeted monthly sales for the second half of 2020 are as follows: July 10,000 units August 15,000 units September 18,000 units October 20,000 units November 16,000 units December 17,000 units The cash collections in October will b $3,840,000 $4,120,000 $3,760,000 Read the related chapter $4,000,000