Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales Total Sales Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month is 80% of the next month's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton's budgeted total cash payments in March for inventory purchases are $385,000. $505,000. $306,250. 300,000 400,000 280,000 $460,000 $550,000 400,000 $280,000.
Information pertaining to Brenton Corporation's sales revenue is presented in the following table: February March April Cash Sales $160,000 $150,000 $120,000 Credit Sales Total Sales Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month is 80% of the next month's projected total sales. All purchases of inventory are on account; 50% are paid in the month of purchase, and the remainder is paid in the month following the purchase. Brenton's budgeted total cash payments in March for inventory purchases are $385,000. $505,000. $306,250. 300,000 400,000 280,000 $460,000 $550,000 400,000 $280,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Information pertaining to Brenton Corporation's sales revenue is presented in the following table:
February March
April
Cash Sales $160,000 $150,000 $120,000
Credit Sales 300,000 400,000 280,000
$460,000 $550,000 400,000
Total Sales
Management estimates that 5% of credit sales are not collectible. Of the credit sales that are collectible, 75% are collected
in the month of sale and the remainder in the month following the sale. Cost of purchases of inventory each month is 80%
of the next month's projected total sales. All purchases of inventory are on account; 50% are paid in the month of
purchase, and the remainder is paid in the month following the purchase.
Brenton's budgeted total cash payments in March for inventory purchases are
$385,000.
$505,000.
$306,250.
$280,000.
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