Problem
Kiel Center's sales are all made on account. The firm's collection experience has been that 31% of a month's sales are collected in the month the sale is made, 52% are collected in the month following the sale, and 15% are collected in the second month following the sale. The sales forecast for the months of June through September is:
June $ 229,000
July 296,000
August 311,000
September 351,000
Required:
Calculate the cash collections that would be included in the cash budgets for August and September.