Problem
Meredith Company has budgeted sales for the upcoming months as follows:
|
April
|
459,000
|
|
May
|
468,000
|
|
June
|
493,000
|
|
July
|
522,000
|
|
August
|
510,000
|
|
September
|
477,000
|
30% of the sales are credit sales, the remainder are made in cash. Credit sales are collected 50% in the month of sale, 40% in the month following the sale, and 5% in the second month following the sale.
a. Compute Meredith Company's cash receipts for June.
b. Compute Meredith Company's cash receipts for July.
c. Compute Meredith Company's cash receipts for August.