Assume that the accounts receivable balance on july 1 was

Reference no: EM13573123

Mitchell Company had the following budgeted sales for the last half of last year:

	Cash Sales	Credit Sales
July	$40,000	$140,000
August	$45,000	$160,000
September	$47,000	$120,000
October	$52,000	$147,000
November	$62,000	$190,000
December	$70,000	$370,000

The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:

Collections on credit sales:

30% in month of sales

35% in month of following sales

35.0% in second month following sales

Assume that the accounts receivable balance on July 1 was $87,000. Of this amount, $70,000 represented uncollected June sales and $17,000 represented uncollected May sales. Given these data, the total cash collected during July would be?

Reference no: EM13573123

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