Northern Company has budgeted sales for the upcoming months as follows (A+ Guaranteed)

Northern Company has budgeted sales for the upcoming months as follows:

April                $456,000
May                 $468,000
June                $491,000
July                 $521,000
August            $504,000
September     $481,000

40% of the sales are credit sales, the remainder are cash sales. Credit sales are collected 45% in the month of sale, 35% in the month following the sale, and 7% in the second month following the sale.

a. Compute Northern Company’s cash receipts for June. (Do not round intermediate calculations. Omit the “$” sign in your response.)

b. Compute Northern Company’s cash receipts for July. (Do not round intermediate calculations. Omit the “$” sign in your response.)

c. Compute Northern Company’s cash receipts for August. (Do not round intermediate calculations. Omit the “$” sign in your response.)

Here’s the SOLUTION

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