The following are additional questions in Budgeting.

$1.$ StartSmall

Collects $40\%$ of its sales on account in the month of the sale

Collects $60\%$ in the month following the sale

All sales are on account

Sales in June are budgeted as $$30,000$

In July, StartSmall targeted cash receipts from sales on account to total $$40,000$

Whatshould be the budgeted sales on account in July?

$2.$ OsM Company has the following information:

Forecast sales for $1$st month $$150,000$

Forecast sales for $2$nd month $ $200,000$

Cash sales $=10\%$ of total sales $10\%$

Collection schedule:

In month sold $80\%$

In next month $20\%$

What are the company's forecast total cash collection in the second month?