ABC Companys budgeted sales for June, July, and August are 12,000, 16,000, and 14,000 units respectively. The selling price for each unit is $18. Based on past experience, ABC expects that 30% of a months sales will be collected in the month of sale, 60% in the following month, and 8% in the second month following the sale. Required: Prepare an analysis of cash receipts from sales for ABC Company for August.

REQUIRED: Calculate the second prior month's sales

a month's sales will be ABC Company's budgeted sales or June, July and August are 12,000, 16,000, and 14,000 units respectively. The selling price for each unit is $18. Based on past exper ence, ABC expects hat 30% o collected in the month of sale, 60% in the following month, and 8% in the second month following the sale. Required: Prepare an analysis of cash receipts from sales for ABC Company for August. July August 16 000 Budgeted sales units Unit selling price Budgeted sales revenuse August collections: 12,000 14,000 18r S 3 S S 216 000 S 288,000S 252 000 S 75 Current month's sales Prior month's sales Second 172,800 prior month's sales Total collections S 248,400