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Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows: Actual: July $ 97,200 August

Scottsdale Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:

Actual:

July

$

97,200

August

104,100

Forecast:

September

114,300

October

93,400

November

121,800

December

107,000

Based on past experience, it is estimated that 23% of a months sales are collected in the month of sale, 54% are collected in the month following the sale, and 7% are collected in the second month following the sale.

Required:

Calculate the estimated cash receipts for September, October, and November.

Explanation:

July

August

September

October

November

Actual sales

$

97,200

$

104,100

Sales forecast

$

114,300

$

93,400

$

121,800

Cash collections:

23% of sales made in the current month

$

26,289

$

21,482

$

28,014

54% of prior month's sale

56,214

61,722

50,436

7% of second prior month's sales

6,804

7,287

8,001

Total cash collections

$

89,307

$

90,491

$

86,451

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