QUESTION 7

Archer Electronics is preparing its annual budget, and your department is working on the cash flow budget. Here is selected information you have:

Description

June Sales $348,000

July Sales $438,000

AugustSales $450,000

The company makes 10% of its sales for cash and 90% on credit. Of the credit sales, 20% are collected in the month after the sale and 80% are collected two months after. The cash receipts for August are:

A.

$326,000

B.

$366,000

C.

$411,000

D.

$374,400

E.

No answers are correct