Sonora Clothing Company is a retail company that sells hiking and other outdoor
ID: 2374648 • Letter: S
Question
Sonora Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year.
The majority of Sonora%u2019s sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Sonora%u2019s purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month.
Sonora Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure getaways in the desert for tourists. The following information is available for several months of the current year.
Explanation / Answer
august =(125000*70%)+(125000*30%*40%)+(130000*30%*60%) 87500+15000+2340 0=125900 dollars ============================================================================================================================================================================================= cash collection for July=127300 dollars ============================================================================================================================================================================================= cash collection for august=125900 dollars ============================================================================================================================================================================================= b) budgeted cash payment for july =(120000*55%)+(95000*45%)+38250 66000+42750+38250=151500 dollars ============================================================================================================================================================================================= budgeted cash payment for august=(80000*55%)+(120000*45%)+34700 44000+54000+34700=132700dollars ============================================================================================================================================================================================= cash payment for july=151500dollars ============================================================================================================================================================================================= cash payment for august=132700 dollars ============================================================================================================================================================================================= please rate my answer with five stars
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