Kiel Center’s sales are all made on account. The firm’s collection experience has been that 35% of a month’s sales are collected in the month the sale is made, 55% are collected in the month following the sale, and 8% are collected in the second month following the sale. The sales forecast for the months of June through September is:
June . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $140,000
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160,000
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195,000
Required:
Calculate the cash collections that would be included in the cash budgets for August and September.