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Detmer Company has budgeted sales for the next six months as follows: Budgeted Sales in Units January 7 , 800 units February ????? units March
Detmer Company has budgeted sales for the next six months as follows: Budgeted Sales in Units January 7,800 units February ????? units March 5,700 units April 3,800 units May 6,300 units June 4,100 units Detmer's product sells for $20 each. Experience has shown that 10% of the company's sales are cash sales and 90% of the company's sales are made on account. The sales on account are collected in the pattern 25% in the month of sale, 55% in the month following sale, 5% is collected in the second month following sale, and 15% is collected in the third month following the month of sale. At April 30, Detmer Company reported a budgeted accounts receivable balance of $85,050. Calculate the total expected cash collections for the month of May.
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