Jackson Company Has Developed the Following Sales Projections for the Calendar

Jackson Company has developed the following sales projections for the calendar year:
$$\begin{array} { | l r | } \hline \text { May } & \$ 100,000 \\\hline \text { June } & 120,000 \\\hline \text { Juby } & 140,000 \\\hline \text { August } & 160,000 \\\hline \text { September } & 150,000 \\\hline \text { October } & 130,000 \\\hline\end{array}$$ Normal cash collection experience has been that 50% of sales is collected during the month of sale and 45% in the month following the sale.The remaining 5% of sales are never collected.Jackson's budgeted cash collections for the third calendar quarter are: (CMA adapted)

A) $450,000.
B) $440,000.
C) $414,000.
D) $360,000.

Correct Answer:

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