Cave? Hardware\'s forecasted sales for? April, May,? June, and July are $200,000

ID: 2412352 • Letter: C

Question

Cave? Hardware's forecasted sales for? April, May,? June, and July are

$200,000?,

$290,000?,

$190,000?, and

$220,000? respectively. Sales are

70?%

cash and 30?% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is

75?% of sales and ending inventory is maintained at

$35,000 plus

10?% of the following? month's cost of goods sold. All inventory purchases are paid

24?% in the month of purchase and

76?% in the following month.

What are the cash collections budgeted for June at Cave? Hardware?

Calculate cash collection for june :

June Cash sales (190000*70%) 133000 Credit sales collection May credit sales (290000*30%) 87000 Total cash collection in june 220000

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