the store\'s operations follow: Sales are budgeted at $334,000 for November, $29

Question

the store's operations follow: Sales are budgeted at $334,000 for November, $294,000 for December, and $337,000 for January collections are expected to be 65% in the month of sale, 16% in the month following the sale, and the remaining amount is collected two months following the sale. The cost of goods sold is 70% of sales. The company desires an ending merchandise inventory equal to 60% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. . . The November beginning balance in the accounts receivable account is $78,000. . The November beginning balance in the accounts payable account is $254,000. How much cash was collected in January? Enter your final answer as an integer, ignore the dollar sign.

Explanation / Answer

Cash collected from November sales (334,000*19%) $    63,460 Cash collected from December sales (294,000*16%) $    47,040 Cash collected from January sales (337,000*65%) $ 219,050 Cash collection on January $ 329,550

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