Salich Manufacturing Corporation has provided the following sales budget information:
July: $45,000
August: $55,000
September: $60,000
Cash sales are normally 40% of total sales; credit sales are expected to be collected in their entirety in the month following the month of sale. The amount of cash expected to be received from customers in September is:
$57,000
August credit sales = [$55,000 × (1 ? 0.4)] = $33,000
September cash sales = ($60,000 × 0.4) = $24,000
Total cash expected to be received from customers in September = Collection of August credit sales + September cash sales = $33,000 + $24,000 = $57,000
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