Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be 50%of total sales, and account sales will be 30% of total sales. Credit card sales are collected in the monthfollowing the sale, net a 3% credit card fee. This means that if the sale is $100, thecredit card company's fee is $3, and Worthington receives $97. Account saleswill be collected as follows: 40% in the first month following the sale, 50% in the second monthfollowing the sale, 8% in the third month following the sale, and 2% never collected.The following table identifed the projected sales for the first year of operations:MonthSalesMonthJanuary $12,369,348 JulySales$21,747,839February 15,936,293 August14,908,534March13,294,309 September11,984,398April19,373,689 October18,894,535May20,957,566 November 21,983,545June18,874,717 December 20,408,367Complete the following statement showing the cash expected each month from the collections ofthese sales.Round all calculations to the nearest whole dollar amount.MonthJanuary $February $March $April $May $June $July $August $September $October $November $December $Cash Sales Credit Card Sales Account Sales Total Cash Collections$$"A$IA$$LA$$$$6A$$$+A$+ALALA$+A$LA$+A$$$ALAALAALALA$$+A$LA$LA$$

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Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be 50% of total sales, and account sales will be 30% of total sales. Credit card sales are collected in the month following the sale, net a 3% credit card fee. This means that if the sale is $100, the credit card company's fee is $3, and Worthington receives $97. Account sales will be collected as follows: 40% in the first month following the sale, 50% in the second month following the sale, 8% in the third month following the sale, and 2% never collected. The following table identifed the projected sales for the first year of operations:

Worthington Company expects that cash sales will be 20% of total sales, credit card sales will be 50% of total sales, and account sales will be 30% of total sales. Credit card sales are collected in the month following the sale, net a 3% credit card fee. This means that if the sale is $100, the credit card company's fee is $3, and Worthington receives $97. Account sales will be collected as follows: 40% in the first month following the sale, 50% in the second month following the sale, 8% in the third month following the sale, and 2% never collected. The following table identifed the projected sales for the first year of operations:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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