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Question

Safari File Edit View History Bookmarks Window Help ? ? 46% L- ? ??))) Tue Jun 19 7:28 PM Alex C ezto.mheducation.com Home - alamo.edu Chapter 8 Exercises value: 6.66 points McFarland Company makes 70 percent of its sales in cash. Credit sales are collected as follows: 70 percent in the month of sale and 30 percent in the month following the sale. McFarland's budgeted sales for upcoming months follow: June July August September $ 23,900 39,000 37,000 35,000 Required Compute McFarland's expected cash receipts for August. Budgeted Cash Re RercrencesebOOK ResoUrces eBook & Hint#1 popcorntime ap

Explanation / Answer

Particulars

calculation

Amount

Proceeds from sale for the month of August - Cash

37000*70%

25900

Proceeds from sale for the month of August - Credit

37000*30% *70%

7770

Proceeds from sale for the month of July – Credit (#)

39000*30%*30%

3510

Total Cash Receipt for the month of August

37180

As per question 30% of sale is done at credit out of which 70% of credit is realized in same month and balance 30% in next month.

(#)In case of July month, 30% of credit will be received in August month. Hence the same added above.