Question - Cash receipts budget Flagstaff Co. has actual sales for July and August and forecast sales for September, October, November, and December as follows:
Actual:
July . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $73,500
August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78,750
Forecasted:
September . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,500
October . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,500
November . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 ,500
December . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,250
Based on past experience, it is estimated that 30% of a month's sales are collected in the month of sale, 50% are collected in the month following the sale, and 18% are collected in the second month following the sale.
Required: Calculate the estimated cash receipts for September, October, and November.