Poolside, Inc., manages neighborhood pools in Oceanside, Florida. The company attempts to make Estimate of Cash Receipts
Question:
Poolside, Inc., manages neighborhood pools in Oceanside, Florida. The company attempts to make Estimate of Cash Receipts J vice calls at least once a month to all homes that subscribe to its service. More frequent calls are m de (LO 3) / -
during the summer. The number of subscribers also varies with the season. The number of subscrib _ /
and th € average numbeberr ooff calclalsls tt o each h subscriber for the months of interest follow: : se ~ eXcel ae Subscribers Service Calls Weer or nhhe,com/hi SET, ieee ean ener 100 ; 0.5 Soxseca=sQeSoo o CM ay, ala AEG~< a AG;
April a feet ee eta Aree ea 120 x 1.0 lAo ¥So= Gooo 3620 Jofe Mayen erectioarnn re ges 260 x 1.8 R37 09 4Y6EO 1YoYo Y42I>
MUNG MRL ekiae ecb 300 2.2 2 3000 G00 19Fex S9¥5 OU eres ase eee cee mapa ccpenedt 300 2.0 Be oO Clee ae a Atigustl Ot Wht ber. 280 17 ot 3 §00 YF b6
§€730 : oto ME ——___ |
The average Price charged for a service call is $50. Of the service calls, 20 percent are paid in the month #1720 3oo1 + QkEPo08 the servMiiccee issf r endered, 60 percent in the month after the service is rendered, and 18 percent in the second month after. The remaining 2 percent is uncollectible.
ee ae Required
a. wast are GUS S a cash receipts for May,J une, July, and August?
Step by Step Answer:
Cost Management Strategies For Business Decisions
ISBN: 12
4th Edition
Authors: Ronald Hilton, Michael Maher, Frank Selto