ACCA · Question 21 · Budgeting

Section A

TimberExport Ltd is preparing its cash budget. Budgeted sales are:

• January: $100,000
• February: $120,000
• March: $150,000

Sales are 20% cash and 80% credit.
Credit sales are collected as follows:

• 50% in the month following the sale
• 28% in the second month following the sale
• 2% are bad debts

Calculate the total cash receipts budgeted for the month of March.

(Enter your answer as a whole number)