ABC Companys budgeted sales for June, July, and August are 13,000, 17,000, and 14,700 units respectively. The selling price for each unit is $14. 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 6% in the second month following the sale.

Required:

Prepare an analysis of cash receipts from sales for ABC Company for August.

June July August

Budgeted sales units 13,000 17,000 14,700

Unit selling price $14 $14 $14

Budgeted sales revenue $182,000 $238,000 $205,800

August collections:

Current months sales $

Prior months sales

Second prior months sales

Total collections $