Question

ABC Company has budgeted sales for the next six months as follows:

             Budgeted Sales in Units
March             13,000 units                          
April             27,000 units
May               34,000 units
June              10,000 units
July              48,000 units
August            69,000 units

ABC Company sells its inventory to customers for $21 per unit.
30% of the company's sales are cash sales and the other 70% of
sales are made on account. The sales on account are collected
in the pattern:

35% collected in the month of sale
26% collected in the month following sale
19% collected in the second month following sale
12% collected in the third month following sale
8% collected four months after the month of sale

Calculate ABC Company's budgeted cash collections for July.

Answer 1