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    Cash budget, collections budget

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    Agee Industries expects credit sales for January, February, and March to be $200,000, $260,000 and $310,000, respectively. It is expected that 70% of the sales will be collected in the month of sale, and 30% will be collected in the following month. Compute cash collections from customers for each month.

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    Solution Summary

    This solution lays out a template for analyzing the "stagger" between sales and collections so the cash budget process is simpler.