23 Grover has forecast sales to be S125000 in February St35

23 Grover has forecast sales to be S125,000 in February. St35 000 in March $150,000 in April, and S 140.000 in May The average cost of goods sold is 70% of sales Al sales are on nade credit and sales are collected 60% in the month of sale, and 40% the month following. What are budgeted cash receipts in March? n O $135,00o O s131000 O $91700 O $94 500

Solution

$131,000 February March April May Sales $125,000 $135,000 $150,000 $140,000 Cash Receipts 60% $75,000 $81,000 $90,000 $84,000 40% $50,000 $54,000 $60,000 Total $75,000 $131,000 $144,000 $144,000