See Company is estimating the following sales for the first six months of next y
ID: 2549952 • Letter: S
Question
See Company is estimating the following sales for the first six months of next year:
January......
$260,000
February....
$220,000
March........
$240,000
April..........
$300,000
May...........
$360,000
Sales at Sioux are normally collected as 60% in the month of sale, 35% in the month following the sale, and the remaining 5% being uncollectible. Based on this information, how much cash should Sioux expect to collect during the month of April?
January......
$260,000
February....
$220,000
March........
$240,000
April..........
$300,000
May...........
$360,000
Explanation / Answer
Calculate amount collect during april :
April Collection from april sales (300000*60%) 180000 Collection from march sales (240000*35%) 84000 Total cash collection in april 264000Related Questions
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