Question

Distribution Corporation collects 35​% of a​ month's sales in the month of​ sale, 45​% in the month following​ sale, and 20​% in the second month following sale. Budgeted sales for the upcoming four months​ are: April budgeted sales $ 50 comma 000 May budgeted sales $ 150 comma 000 June budgeted sales $ 260 comma 000 July budgeted sales $ 230 comma 000 The amount of cash that will be collected in July is budgeted to be

Answer 1

Answer:

The amount of cash that will be collected in July is budgeted: $227,500

Explanation:

In Distribution Corporation:

The amount of cash that will be collected in July is budgeted = 35% x July budgeted sales + 45% x June budgeted sales + 20% x May budgeted sales.

May budgeted sales are $ 150,000

June budgeted sales are $ 260,000

July budgeted sales are $ 230,000

July budgeted cash collected = 35% x $230,000 +  45% x $260,000 + 20% x  $150,000 = $227,500