Mitchell Company had the following budgeted sales for the last half of last year:
|
Cash Sales |
Credit Sales |
| July |
$40,000 |
$140,000 |
| August |
$45,000 |
$160,000 |
| September |
$47,000 |
$120,000 |
| October |
$52,000 |
$147,000 |
| November |
$62,000 |
$190,000 |
| December |
$70,000 |
$370,000 |
|
The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled:
|
| Collections on credit sales: |
| 30% in month of sales |
| 35% in month of following sales |
| 35.0% in second month following sales |
Assume that the accounts receivable balance on July 1 was $87,000. Of this amount, $70,000 represented uncollected June sales and $17,000 represented uncollected May sales. Given these data, the total cash collected during July would be?