Mitchell Company had the following budgeted sales for the last half of last year:
|
Cash Sales |
Credit Sales |
| July |
$60,000 |
$160,000 |
| August |
$65,000 |
$180,000 |
| September |
$55,000 |
$140,000 |
| October |
$60,000 |
$155,000 |
| November |
$70,000 |
$210,000 |
| December |
$90,000 |
$450,000 |
|
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
|
| Collections on credit sales: |
| 45% in month of sales |
| 35% in month of following sales |
| 20.0% in second month following sales |
Assume that the accounts receivable balance on July 1 was $80,000. Of this amount, $55,000 represented uncollected June sales and $25,000 represented uncollected May sales. Given these data, the total cash collected during July would be?