East Hills Ltd is a small retailer that operates from premises in a suburban shopping centre. Budgeted sales for the 3-month period July–September 2022 are:

• $440 000 for July

• $640 000 for August

• $820 000 for September The management of East Hills Ltd expects 30 per cent of its sales to be cash sales. For its credit sales, 75 per cent are expected to be collected in the month of the sale, 20 per cent in the month following the sale, and the remainder are expected to be uncollectable.

(i) What are East Hills Ltd’s cash collections from customers in August 2022 predicted to be?

(ii) What are the expected cash collections from customers in September 2022?