Please look over the last problem for the week.
Duffy Corporation has prepared the following sales budget:
Month Cash Sales Credit Sales
May $16,000 $68,000
June 20,000 80,000
July 18,000 74,000
August 24,000 92,000
September 22,000 76,000
Management estimates that 5% of credit sales are not collectible and of the credit sales that are collectible, 60 % are collected in the month of sale and the remainder in the month following the sale.
Cost of purchases of inventory each month are 70% of the next month's projected sales with 11 purchases of inventory are on account. 25% are paid in the month of purchase, and the remainder is paid in the month following the purchase.
What would the cash receipts be for June?