The Task Company will begin operations in April. You have budgeted for April sales of $30,000, May sales of $34,000, June sales of $40,000, July sales of $42,000, and August sales of $38,000. Note that 10% of sales for each month shall represent cash sales; 75% of the balance will be collected in the month following the sale, 17% the second month, 6% the third month and the balance is insolvency. 

What is the amount of cash to be collected in the month of July?

Answer rating: 100% (QA)

First we need to calculate the credit sales for each month by ... View the full answer