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Millard's Mops is preparing a cash flows budget for the year. The quarterly sales budget shows the following: Sales (# of mops) 1st Quarter =

Millard's Mops is preparing a cash flows budget for the year. The quarterly sales budget shows the following:

Sales (# of mops)

  • 1st Quarter = 100,000
  • 2nd Quarter = 120,000
  • 3rd Quarter = 180,000
  • 4th Quarter = 160,000

Mops sell for an average cost of $2 each. Based on his review of last year's experience, Millard learned that 90% of the revenues are collected in the quarter the items are sold and the remaining 10% are collected in the following quarter.

What is the total amount of expected cash collections during the third quarter?

$174,000
$179,000
$348,000
$358,000

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