Answer:
The Schedule of Cash Collections is below:
Cash Collection from Sales JULY AUGUST SEPTEMBER
50% from month $80,000 $75,000 $65,000
30% from previous month $42,000 $48,000 $45,000
15% from two previous months$18,000 $21,000 $24,000
$140,000 $144,000 $134,000
Explanation:
The schedule of cash collection is attached herein.
July collections are as follows:
50% of $160,000 July + 30% of $140,000 June + 15% of $120, 000 May Sales
August collections are as follows:
50% of $150,000 August + 30% of $160,000 July + 15% of $140,000 June Sales
September collections are as follows:
50% of $130,000 September + 30% of $150,000 August + 15% of $160,000 July Sales
