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On October 1 of the current year, Malone Corporation prepared a cash budget for October, November, and December. All of Malone's sales are made on
On October 1 of the current year, Malone Corporation prepared a cash budget for October, November, and December. All of Malone's sales are made on account. The following information was used in preparing estimated cash collections:
August sales (actual) | $ | 50,000 | |
September sales (actual) | $ | 60,000 | |
October sales (estimated) | $ | 30,000 | |
November sales (estimated) | $ | 80,000 | |
December sales (estimated) | $ | 70,000 | |
Approximately 65% of all sales are collected in the month of the sale, 20% is collected in the following month, and 15% is collected in the month thereafter.
Budgeted collections from customers in October total:
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