Question
Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble the
Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble the cash budget for the fourth quarter. Projected sales for the quarter are as follows: On Account Cash October $400,000 $190,000 November 690,000 220,000 December 750,000 245,000 Cash collection records pertaining to sales on account indicate the following collection pattern: Month of sale 40% First month following sale 30% Second month following sale 28% Uncollectible 2% Sales on account during August were $346,000. During September, sales on account were $390,000. Compute the amount of cash to be collected from customers during each month of the fourth quarter.
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