Question
1. Creighton Company has budgeted sales for the upcoming months as follows: February $600,000 March $615,000 April $645,000 May $670,000 Seventy percent of the sales
1. Creighton Company has budgeted sales for the upcoming months as follows:
February $600,000
March $615,000
April $645,000
May $670,000
Seventy percent of the sales are credit sales, the remainder are cash sales. Credit sales are collected 40% in the month of sale, 50% in the month following the sale, and 10% in the second month following the sale.
Required:
a. Compute Creighton's cash receipts for April.
b. Compute Creighton's cash receipts for May.
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The Teams Audit
Authors: Kevin Barham
1st Edition
1907766030, 978-1907766039
