Let's break down the problem into **3 steps** with explanations at each step and a final answer at the end. We'll focus on part (a), which asks for the **budgeted cash collections for July**. --- ### Step 1: **Calculate Cash Sales Collection for July** **Given Data:** - July total sales = $80,000 - 60% of sales are on credit; the rest (40%) are cash sales. **Calculation:** - Cash sales in July = 40% of $80,000 = **$32,000** **Explanation:** Only the cash portion of sales is collected immediately in the month of sale (July). --- ### Step 2: **Calculate Credit Sales Collection for July** **Given Data:** - Credit sales in July = 60% of $80,000 = $48,000 - Of credit sales: 50% collected in the month of sale (July), 50% collected next month (August). **Calculation:** - Credit sales collected in July = 50% of $48,000 = **$24,000** **Explanation:** Half of the credit sales for July will be collected in July itself. --- ### Step 3: **Add Credit Sales Collection from Previous Month (June)** **Given Data:** - Credit sales in June = 60% of $73,000 = $43,800 - 50% collected in July = 0.5 × $43,800 = **$21,900** **Explanation:** The other half of June’s credit sales will be collected in July. --- ## **Final Answer: Budgeted Cash Collections for July** Add up all the collections for July: - Cash sales in July: **$32,000** - Credit sales collected in July (from July sales): **$24,000** - Credit sales collected in July (from June sales): **$21,900** **Total Budgeted Cash Collections for July = $32,000 + $24,000 + $21,900 = $77,900** --- ### **Summary Table** | Source | Amount | |---------------------------------------|----------| | Cash Sales (July) | $32,000 | | Credit Sales (July, collected in July)| $24,000 | | Credit Sales (June, collected in July)| $21,900 | | **Total Cash Collections (July)** | **$77,900** | --- **Final Answer: The total budgeted cash collections for July are $77,900.**