1. Rami the owner of a toy shop, is preparing a sales budget for the next three months. After consulting with friends in the same business, he estimated June revenues to be $20,000. He expects revenues to increase by $2,000 per month in July and August. Rami also expects that 70% of sales to be cash and 30% of sales to be on credit. Sales on credit are expected to be collected as follows:
2. 40% in the month of sale and 60% in the month following the month of sale

1. What is the expected total cash collection for August?

1. 
   

Answer rating: 100% (QA)

To calculate the expected total cash collection for August we need to consider the sales on credit a... View the full answer