Question: 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.