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Northwest Equipment offers a 3% discount to customers who pay cash at the time of sale and a 2% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern:
Cash collected at time of sale 55%
Collected within cash discount period in first 10 days of month after sale 15%
Collected after cash discount period in first month after month of sale 10%
Collected after cash discount period in second month after month of sale 15%
Never collected 5%
Compute the total cash budgeted to be collected in March if sales forecasts are $370,000 for January, $420,000 for February, and $460,000 for March.
The answer has 5 boxes with the following choices to be calculated in addition to total cash collections:
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