The Lime Corporation has obtained the following sales forecast data:
July August September October
Cash sales $ 80,000 $ 70,000 $ 50,000 $ 60,000
Credit sales $ 240,000 $ 220,000 $ 180,000 $ 200,000
The regular pattern of collection of credit sales is 20% in the month of sale, 70% in the month following the month of sale, and the remainder in the second month following the month of sale. There are no bad debts. The budgeted cash receipts for October would be:
a. $188.000
b. $248,000
c. $226,000
d. $278,000
e. none of above
Answers: 2
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The Lime Corporation has obtained the following sales forecast data:
July August September October...
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