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5. The Doley Company has planned the following sales for the next three months: 10marks Jan Budgeted Sales $40,000 Feb $50,000 Mar $70,000 Sales
5. The Doley Company has planned the following sales for the next three months: 10marks Jan Budgeted Sales $40,000 Feb $50,000 Mar $70,000 Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale First month following sale Second month following sale Uncollectible 60% 30% 8% 2% The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Required: Compute the budgeted cash receipts for March
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