Led Zeppelin Company is a small wholesaler of gourmet food products. Data regard

ID: 2512619 • Letter: L

Question

Led Zeppelin Company is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Sales are budgeted at $380,000 for November, $400,000 for December, and $400,000 for January.

Collections are expected to be 80% in the month of sale, 19% in the month following the sale, and 1% uncollectible.

Expected cash collections in December are:

$392,200

$320,000

$400,000

$72,200

Led Zeppelin Company is a small wholesaler of gourmet food products. Data regarding the store's operations follow:

Expected cash collection in december = 80% of the month sale+19% of prior month sales

= (400000*80%+380000*19%)

Expected cash collection in december = 392200

so answer is a) $392200

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