Exercise on computing expected/budgeted cash collections.

X Company makes both cash and credit sales. Past records show that cash sales are 25% of total sales and credit sales are 75%. History has also shown that credit sales are collected 40% in the month of sale and 60% in the following month.

According to their budget, total sales expected for the second quarter are: April of $500,000 May of $600,000, and June of $650,000.

Calculate expected/budgeted cash collections just for the month of May. (50 points)