Cash receipts a firm has actual sales of $ 60 comma 000 in april and $ 64 comma 000 in may. it expects sales of $ 75 comma 000 in june and $ 95 comma 000 in july and in august. assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firm's expected cash receipts for june, july, and august?

Month incurred   Amount     June     July      August

June                     75,000     37500   18,750  18,750

July                       95,000                   47,500  23,750

August                  95,000                                 47,500

                                              37,500   66,250  90,000

The expected cash receipts are:

June = $37,500

July = $66,250

August = $90,000

Explanation:

The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.

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