A company is formulating its plans for the coming year, including the preparation of its cash budget. Historically, the company's sales are 30% cash. The remaining sales are on credit with the following collection pattern: Collections on Account Percentage
In the month of sale 40%
In the month following the sale 58%
Uncollectible 2%
Sales for the first 5 months of the coming year are forecast as follows:
January $3,560,000
February 3,860,000
March 3,660,000
April 4,060,000
May 4,260,000
For the month of April, the total cash receipts from sales and collections on accounts would be: (CIA adapted)
a. $5,048,745.
b. $3,575,525.
c. $3,762,670.
d. $4,861,600.