The Chateau Company has planned the following sales for the next three months January February March Budgeted Sales $40,000 $50,000 $70,000 From past experience, the company has learned that 20 of sales are cash and 80 are credit Credit sales are collected according to the following pattern 60 in the month of sale, 40 in the first month following sale Beginning cash is zero Budgeted merchandise purchases and budgeted expenses for the first quarter are given below January February March Merchandise purchases $34,000 $35,000 $17,000 Salaries and wages 4,000 5,000 4,000 Advertising 3,000 1,000 1,000 Rent payments 6,000 Depreciation 2,000 2,000 2,000 Purchases are paid in the following month, rent is paid annually at the beginning of the year whereas, salaries and advertising expenses are paid as incurred Calculate the total cash to be received from sales for January, February and March Show your workings BRIEFLY (you do not need to show your workings in detail)

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The Chateau Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 From past experience, the

The Chateau Company has planned the following sales for the next three months:

January February March

Budgeted Sales $40,000 $50,000 $70,000

From past experience, the company has learned that 20% of sales are cash and 80% are credit. Credit sales are collected according to the following pattern: 60 % in the month of sale, 40 % in the first month following sale. Beginning cash is zero.

Budgeted merchandise purchases and budgeted expenses for the first quarter are given below:

	January	February	March
Merchandise purchases	$34,000	$35,000	$17,000
Salaries and wages	4,000	5,000	4,000
Advertising	3,000	1,000	1,000
Rent payments	6,000	-	-
Depreciation	2,000	2,000	2,000

Purchases are paid in the following month, rent is paid annually at the beginning of the year; whereas, salaries and advertising expenses are paid as incurred.

Calculate the total cash to be received from sales for January, February and March. Show your workings BRIEFLY (you do not need to show your workings in detail)