All sales at Meeks Company, a wholesaler, are made on credit. Experience has shown that 70% of the accounts receivable are collected in the month of the sale, 26% are collected in the month following the sale, and the remaining 4% are uncollectible. Actual sales for March and budgeted sales for April and May are given below:
March (actual sales) $200,000
April $300,000
May $500,000
Required:
Compute the amount of cash, in total, which the company can expect to collect in May.
