XYZ Company collects payment on 50 percent of credit sales in the month of sale, 40 percent in the month following sale, and 5 percent

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XYZ Company collects payment on 50 percent of credit sales in the month of sale, 40 percent in the month following sale, and 5 percent in the second month following the sale. Its sales budget is as follows:

Compute XYZ Company's total cash collections in July and its total cash collections inAugust.

Month May June July August Cash Sales e aes S 40,000 60,000 80,000 100,000 $20,000 40,000 60,000 80,000