Answer:
Total= $275,000
Explanation:
Giving the following information:
70% of sales are collected in the month of sale
20% in the month following sale
10% in the second month following sale.
Budgeted sales data:
February= $300,000
March= $350,000
April= $250,000
The cash collection of any given month is comprised of cash from the two months before.
Cashe collection:
From February= 300,000*0.1= 30,000
From March= 350,000*0.2= 70,000
From April= 250,000*0.7= 175,000
Total= $275,000
