Information pertaining to Collection Corporation's sales revenue is presented below: December $ 132,000 457,000 $ 589,000 Cash sales Credit sales Total sales Multiple Choice Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O $572.248 O $388,936. O O O $437,464. $480,519. November $ 103,000 295,000 $ 398,000 $521,244 January $ 85,000 241,000 $ 326,000
Information pertaining to Collection Corporation's sales revenue is presented below: December $ 132,000 457,000 $ 589,000 Cash sales Credit sales Total sales Multiple Choice Management estimates that 4% of credit sales are eventually uncollectible. Of the collectible credit sales, 65% are likely to be collected in the month of sale and the remainder in the month following the month of sale. The company desires to begin each month with an inventory equal to 75% of the sales projected for the month. All purchases of inventory are on open account; 30% will be paid in the month of purchase, and the remainder paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling prices. Total budgeted cash collections in January by Collection Corporation are: O $572.248 O $388,936. O O O $437,464. $480,519. November $ 103,000 295,000 $ 398,000 $521,244 January $ 85,000 241,000 $ 326,000
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 4MC
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