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Blooming Products Inc. sells flower bulbs to local nurseries. Each bag of bulbs sells for $10 . The company's accountant has prepared the following sales
Blooming Products Inc. sells flower bulbs to local nurseries. Each bag of bulbs sells for $10. The company's accountant has prepared the following sales forecast (in bags) for the fourth quarter of 2019:
October | 5,000 bags |
November | 9,000 bags |
December | 8,000 bags |
Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 30 percent in the month following sale, 8 percent in the second month following sale, 2 percent of sales is un-collectible.
Determine the projected cash receipts for December 2019.
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