MC Qu. 79 Mitchell Company had the following budgeted sales.. Richards Corporati

Question

MC Qu. 79 Mitchell Company had the following budgeted sales.. Richards Corporation has the following budgeted sales for the first half of next year anua 60,000 $65,000 180,000 140,000 $138,000 March 90,000 The company is in the collections by month. To this end, the following information has been assembled process of preparing a cash budget and must determine the expected cash of sales accounts receivable balance on January 1 is $67,000 Of this amount. $55,000 represents uncollected December sales and S12.000 represents uncollected November sales The total cash collected during January would be O $257.000 O $100.000 O $174.00o

Explanation / Answer

Correct anwser is $ 174,000

Particulars Amounts a January cash Sale $          60,000 b January credit Sale $        160,000 c Cash received from Jan sales $          72,000 Receivables d Out of December $          55,000 e Sales of December [d/(1 - 45%)] $        100,000 f Cash collected out of Dec sale $          30,000 Out of November g Cash collected out of nov sale $          12,000 h Total Cash collected (a+c+f+g) $        174,000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.