Question:
The treasurer of Homeyra Corp. needs to estimate cash collections from accounts receivable for September, October, and November 2011. Forty percent of the company's customers pay in cash and the rest are credit customers. The collection pattern for the credit customers is 20 percent in the month of sale and 80 percent in the following month. Because of Homeyra's established client base, the company experiences almost zero uncollectible accounts. Estimated total sales for August, September, October, and November 2011 follow.
August ................$78,000
September ............. 80,000
October ................ 95,000
November ............. 91,000
Determine Homeyra Corp.'s cash collections for September, October, and November 2011.