Milo Corporation sells beach umbrellas. The company is now preparing detailed budgets for the third quarter (i.e. July 1st-September 30th), and has assembled the following information to assist in its budget preparation:

Sales Forecast

Units | Revenues

June (actual) 4,000 | $200,000

July 8,000 | 400,000

August 10,000 | 500,000

September 3,000 | 150,000

All sales are on account. Based on past experience, collections follow this pattern: 60% in the month of sale, 40% in the month following the month of sale. Cash collections during the third quarter are expected to be:

a. $1,070,000 b. $1,050,000 c. $990,000 d. $980,000

Milo Corporation sells beach umbrellas. The company is now preparing detailed budgets for the third quarter (i.e. July 1st-September 30th, and has assembled the following information to assist in its budget preparation: Sales Forecast All sales are on account. Based on past experience, collections follow this pattern: 60% in the month of sale, 40% in the month following the month of sale. Cash collections during the third quarter are expected to be: $1,070,000 $1,050,000 $990,000 $980,000