Question One

Winter Products is a wholesale distributor of snow ploughs in Australia. Thus, peak sales

occur in August of each year as shown in the company's sales budget for the third

quarter, given below:

From past experience, the company has learned that $30\%$ of a month's sales are collected

in the month of sale, another $60\%$ are collected in the month following sale, and the

remaining $10\%$ are collected in the second month following sale. May sales totaled

$$450,000,$ and June sales totaled $$550,000.$

Required:

Prepare a schedule of expected cash collections from sales by month. $($July$,$ August, and

September$).$