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    Cash Collections for Firm Cash Budgets

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    Great Buy's sales are all made on account. The firm's collection experience has been that 20% of a month's sales are collected in the month of sale, 60% are collected in the month following the sale, and 18% are collected in the second month following the sale. The sales forecast for August through November is:

    Aug.---------$480,000
    Sept.--------$560,000
    Oct.---------$600,000
    Nov.---------$700,000

    Calculate the cash collections that would be included in the cash budgets for Oct. and Nov.

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    https://brainmass.com/business/accounting/cash-collections-firms-cash-budgets-249020

    Solution Summary

    Detailed explanation is given that determines the cash collections for Great Buy's cash budgets for the months of October and November.

    $2.19

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