XYZ Company collects 20% of a month's sales in the month of sale, 70% in the month following sale, and 5% in the second month following sale. The remainder is not collectible. Budgeted sales for the subsequent four months are:
January February March April
Budgeted sales $279,000 $357,000 $260,000 $161,000
Cash collections in the month of April are budgeted to be:
$232,050
$266,772
$200,079
$222,310