Question

Distribution Corporation collects 40​% of a​ month's sales in the month of​ sale, 55​% in the month following​ sale, and 5​% in the second month following sale. Budgeted sales for the upcoming four months​ are: April budgeted sales $ 140 comma 000 May budgeted sales $ 110 comma 000 June budgeted sales $ 300 comma 000 July budgeted sales $ 210 comma 000 The amount of cash that will be collected in July is budgeted to be

Answer 1

Instructions are listed below.

Step-by-step explanation:

Giving the following information:

Distribution Corporation collects 40​% of a​ month's sales in the month of​ sale, 55​% in the month following​ sale, and 5​% in the second month following sale.

Budgeted sales for the upcoming four months​ are:

April= $140,000

May= $110,000

June= $300,000

July= $210,000

Cash collection for July:

July= 210,000*0.4= 84,000

From June= 300,000*0.55= 165,000

From May= 110,000*0.05= 5,500

Total= $254,500