Reference no: EM132429290

Question - Gisi Ltd provides the following sales projections for the next four months:

July $42,000

August $54,000

September $66,000

October $36,000

Actual sales in May were $21,000 and in June were $33,000.

Past records reveal that approximately:

- 40% of sales are for cash and receive a 3% discount

- 75% of credit customers pay the month after sale, with the rest the following month (i.e. two months after sale) if they pay

- 5% of credit customers never pay

Inventory is sold at a mark-up of 200% (i.e. the cost price is one-third of the selling price) and Gisi requires closing inventory to be a half (1/2) of the following month's cost of goods sold. Inventory at 30 June 2010 was valued at $5,000.

Calculate the estimated total receipts from customers for each of the months July, August and September.