Search Engine Corp has provided the following details concerning budgeted sales
Budgeted Sales
Jan $75,000
Feb 69,000
March 80,000
April 82,000
May 80,500
June 92,000
The collection policy of the company is to collect 20% in the month of sale, 40% in the following month, and remaining 40% in the second month after the month of sale. All sales are made on account.
Calculate the cash receipts from customers for the first six months.
What will be an ideal response
Calculation of cash receipts for the first six months:
Jan Feb March April May June
Budgeted sales $75,000 $69,000 $80,000 $82,000 $80,500 $92,000
Cash Receipts from
customers:
Month of sale (20%) 15,000 13,800 16,000 16,400 16,100 18,400
First month after sale (40%) 30,000 27,600 32,000 32,800 32,200
Second month after sale (40%) 30,000 27,600 32,000 32,800
Total collection from
customers $15,000 $43,800 $73,600 $76,000 $80,900 $83,400
You might also like to view...
An organization that contains two command structures, and in which some people actually report to two bosses, is a ______ structure.
A. matrix B. bifunctional C. team-based D. hybrid E. network
For a one-tailed (upper tail) hypothesis test with a sample size of 26 and a .01 level of significance, the critical value of the test statistic t is
A. 2.797. B. 2.787. C. 2.485. D. 2.479.
Which of the following is one of the most widely used social media management systems by large and small companies?
a. Owlsuite. b. Hootsuite. c. Salesforce. d. SocialOomph. e. Tweetsi
Fair use depends if the copying is for commercial or educational use
a. True b. False Indicate whether the statement is true or false