18) Na vida Corporation collects 30% of a month\'s sales in the month of sale 55

Question

18) Na vida Corporation collects 30% of a month's sales in the month of sale 55% in the month following sale, and 10% in the second month following sale. Given t sales are uncollectible. Budgeted sales for the upcoming four months are as follows: he past experience, the company has found that 5% of their August budgeted sales September budgeted sales October budgeted sales November budgeted sales $300,000 $280,000 $330,000 $260,000 The amount of cash that will be collected in November is budgeted to be A) $291,500 B) $78,000. C) $287,500. D) $283,000.

Explanation / Answer

Answer

Ans. is C. $287500

The amount of cash that will be collected in november is budgeted to be:

For the month   = 30%*260000                              =78000

For the following month = 55%*330000                   =181500

For the second following month = 10%*280000      =28000

Total collection                                                   =$287500

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.