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Mitchell Company had the following budgeted sales for the last half of last year: Cash Sales Credit Sales July $70,000 $170,000 August $75,000 $190,000 September

Mitchell Company had the following budgeted sales for the last half of last year:
Cash Sales Credit Sales
July $70,000 $170,000
August $75,000 $190,000
September $32,000 $150,000
October $37,000 $132,000
November $47,000 $220,000
December $100,000 $220,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:
50% in month of sales
40% in month of following sales
10.0% in second month following sales

Assume that the accounts receivable balance on July 1 was $65,000. Of this amount, $47,000 represented uncollected June sales and $18,000 represented uncollected May sales. Given these data, the total cash collected during July would be:

$238,000
$94,000
$210,600
$291,000

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