1) Natcher Corporation collects 60% of a month\'s sales in the month of sale, 30

Question

1) Natcher Corporation collects 60% of a month's sales in the month of sale, 30% in the month 1) following sale, and 5% in the second month following sale. Therompanchalau dihatsut- their sates are uncottectibte: Budgeted sales for the upcoming four months are: August budgeted sales September budgeted sales October budgeted sales November budgeted sales 250,000 350,000 390,000 $230,000 The amount of cash that will be collected in November is budgeted to be A) $218,500 B) $138,000 C) $272,500 D) $338,500

Explanation / Answer

Cash collections in November=(0.6*November)+(0.3*October)+(0.05*September)

which is equal to

=(0.6*230,000)+(0.3*390,000)+(0.05*350,000)

which is equal to

=$272500.

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