E 12. XYZ Company collects payment on 50 percent of credit sales in the month of sale,
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E 12. XYZ Company collects payment on 50 percent of credit sales in the month of sale, 40 percent in the month following sale, and 5 percent in the second month following the sale. Its sales budget is as follows:
Month Cash Sales Credit Sales May $20,000 $ 40,000 June 40,000 60,000 July 60,000 80,000 August 80,000 100,000 Compute XYZ Company’s total cash collections in July and its total cash collections in August.
Cash Budget
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