Problem
Cadiz Company is trying to budget how much cash it should receive in the month of March related to its sales. The below table lists the expected sales in February - April. Month Sales February $7,600, March $8,700, April $9,000.
Of the sales, 60% are paid with cash. The remaining 40% of the sales are recorded as accounts receivables. The company typically collects the cash related to the accounts receivables in the month following the sale. How much total cash does the company budget to receive in March?