Answer:
$30,000
Explanation:
The cash budget is a projection (done by management) of the cash inflows and cash outflows expected for a given period of time.
It shows the expected movement in cash based on the expected sales and expenses.
Given that 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, the expected cash receipts for March will include 20% of the sales in March, 40% of the sales in February and 40% of the sales in January.
= 20% * $20,000 + 40% * $35,000 + 40% * $30,000
= $4,000 + $14,000 + $12,000
= $30,000
