Mitchell Company had the following budgeted sales for the last half of last year:
|
Cash Sales |
Credit Sales |
| July |
$70,000 |
$170,000 |
| August |
$75,000 |
$190,000 |
| September |
$54,000 |
$150,000 |
| October |
$59,000 |
$154,000 |
| November |
$69,000 |
$220,000 |
| December |
$100,000 |
$440,000 |
|
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: |
| 40% in month of sales |
| 30% in month of following sales |
| 30% in second month following sales |
What is the budgeted accounts receivable balance on December 1?