Fielding Wilderness Outfitters had projected its sales for thefirst six months o
ID: 2671236 • Letter: F
Question
Fielding Wilderness Outfitters had projected its sales for thefirst six months of 2008 to be as follows:Jan $ 50,000 Apr. $180,000
Feb. $ 60,000 May $ 240,000
Mar. $ 100,000 June $ 240,000
Cost of goods sold is 60% of sales. Purchases are made and paid for two months prior to sale. 40% of sales are collected in the month of the sale, , 40% are collected in the month following the sale, and the remaining 20% in the second company's cash balance as of March 1st, 2008 is projected to be $40,000 and the company wants to maintain a minimum cash balance of $15,000.Excess short term borrowing (if any exists)Fielding has no short term borrowing as of March 1st, 2008. assume that the interest on short term borrowing is 1% per month. What is fielding 's projected total receipts (collections) for april?
Explanation / Answer
Fielding Wilderness Outfitters had projected its sales for thefirst six months of 2008 to be as follows:
Jan $ 50,000 Apr. $180,000
Feb. $ 60,000 May $ 240,000
Mar. $ 100,000 June $ 240,000
Cost goods of sold is 60% of sales. Purchases are made and paid for two months prior to sale. 40% of sales are collected in the month of the sale, , 40% are collected in the month following the sale, and the remaining 20% in the second company's cash balance as of March 1st, 2008 is projected to be $40,000 and the company wants to maintain a minimum cash balance of $15,000.Excess short term borrowing (if any exists)Fielding has no short term borrowing as of March 1st, 2008. assume that the interest on short term borrowing is 1% per month. What is fielding 's projected total receipts (collections) for april?
answer = $ 84,000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.