Avril Company makes collections on sales according to the following schedule:
30% in the month of sale
60% in the month following sale
8% in the second month following sale
The following sales are expected:
Expected sales
Jan $100,000
Feb $120,000
Mar $110,000
Cash collections in March should be budgeted to be:
a. $110,000
b. $110,800
c. $105,000
d. $113,000