Avril Company makes collections on sales according to the fo

Avril Company makes collections on sales according to the following schedule: 45% In the month of sale 50% in the month following sale 5% in the second month following sale The following sales have been are expected: January February March Expected Sales $160,000 $180,000 $170,000 Budgeted cash collections In March should be budgeted to be: O $174,500 $170,800 o $170,000 O $166,500o

Solution

Budgeted cash collections for March $ January (160,000*5%) 8000 February (180,000*50%) 90000 March (170,000*45%) 76500 Cash collection 174500 answer