Calgon Products, a distributor of organic beverages, needs a cash budget for September. The
following information is available:
a.
The cash balance at the beginning of September is $9,000.
b. Actual sales for July and August and expected sales for September are as follows:
July
August
September
$ 6,500
$ 5,250
$ 7,400
Cash sales.
20,000
30,000
40,000
Sales on account
$26,500
$35,250
$47,400
Total sales.
Sales on account are collected over a three-month period as follows: 10% collected in the month of
sale, 70% collected in the month following sale, and 18% collected in the second month following