Cave Hardware's forecasted sales for April, May, June, and July are $220,000, $260,000, $190,000, and $300,000, respectively. Sales are 70% cash and 30% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $55,000 plus 20% of the following month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are the cash collections budgeted for June at Cave Hardware? $267,000 $133,000 $211,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cave Hardware's forecasted sales for
April, May, June, and July are
$220,000, $260,000, $190,000, and
$300,000, respectively. Sales are 70%
cash and 30% credit with all accounts
receivables collected in the month
following the sale. Cost of goods sold
is 75% of sales and ending inventory is
maintained at $55,000 plus 20% of
the following month's cost of goods
sold. All inventory purchases are paid
28% in the month of purchase and
72% in the following month.
What are the cash collections
budgeted for June at Cave Hardware?
$267,000
$133,000
$211,000
$156,000
Transcribed Image Text:Cave Hardware's forecasted sales for April, May, June, and July are $220,000, $260,000, $190,000, and $300,000, respectively. Sales are 70% cash and 30% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $55,000 plus 20% of the following month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are the cash collections budgeted for June at Cave Hardware? $267,000 $133,000 $211,000 $156,000
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