Werntz furniture had actual sales for July and august and forecasted sales for September, October, November and December as follows:
Actual: July………………………………………………………….$ 98,000
August……………………………………………………… 105,000
Forecast September………………………………………………… 114,000
October…………………………………………………….. 94,000
November…………………………………………………… 122,000
December……………………………………………………..107,000
Based on company experience, it is estimated that 30 percent of a month’s sales are collected in the month of the sale, 55 percent in the month following the sale and 10 percent in the second month following the sale.
Calculate the estimated cash receipts for September, October, and November