Gold Ltd has the following budgeted sales for coming periods: -
May 20X1 £100,000
June 20X1 £120,000
July 20X1 £150,000
The budgeted sales of each month consist of 40% cash and 60% credit. The expected collection patterns for the credit sales are:
- 80% in the month following the sale;
- 15% in the second month of the sale;
and 5% will never settle.
How much will be the expected cash collections in July 20X1?
Select one:
a. £126,600
b. £118,800
c. £171,000
d. £66,600