Company is trying to budget how much cash it should receive in the month...
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Accounting
Company is trying to budget how much cash it should receive in the month of March related to its sales. The below table lists the expected sales in January - May.
Month
Sales
January
$510,000
February
$430,000
March
$200,000
April
$830,000
May
$980,000
Of the sales, 60% are paid with cash. The remaining 40% of the sales are recorded as accounts receivables. The company typically collects the 90% of the cash related to the accounts receivables in the month following the sale and 10% in two months following the sale.
How much total cash does the company budget to receive in March?
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