Reference no: EM131710356

Question - Cash Collections

Five Bros., Inc., is an automobile maintenance and repair company with outlets throughout the western United States. The company controller is starting to assemble the cash budget for the fourth quarter. Projected sales for the quarter are as follows:

	On Account	Cash
October	$400,000	$190,000
November	690,000	220,000
December	750,000	245,000

Cash collection records pertaining to sales on account indicate the following collection pattern:

Month of sale                                40%

First month following sale               30%

Second month following sale           28%

Uncollectible                                  2%

Sales on account during August were $346,000. During September, sales on account were $390,000.

Compute the amount of cash to be collected from customers during each month of the fourth quarter.