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    Kiel Center: Cash Collections Budget

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    Kiel Center sells only on credit (no cash sales). Prior collection patterns show that 28% of a month's
    sales are collected in the month of the sale, 51% are collected in the month after the sale, and 19%
    are collected in the second month after the sale. For example, June sales would be collected over three month, June (28%), July (51%) and August (19%).. The rest would be considered "uncollectible" and not included in the cash collections budget.

    Sales budget for June through September show:

    June $227,000
    July $286,000
    August $305,000
    September $375,000

    What is the cash collection budget for August and September?

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    Solution Summary

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