Statues Inc. has the following sales budget for the second of the current year:
April May June Total Budgeted sales $250,000 $340,000 $590,000 $1,180,000 From past experience the company has learned that 10% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 30% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled 0,000 and March Sales totaled $220,000.
For each of the following months, calculate the amount of projected cash collections: Show solutions and related details.