Question
1.The company has projected the following sales for the spring quarter of 2014: April$200,000 May$250,000 June$275,000 65% of all sales are paid for with cash.
1.The company has projected the following sales for the spring quarter of 2014:
April$200,000
May$250,000
June$275,000
65% of all sales are paid for with cash. The remainder is on credit.
The pattern for credit receivables collections are:
Month of sale60%
Month after sale30%
Second month after sale10%
What are the forecasted cash collections for the month of June?
a.$178,750
b.$248,750
c.$269,750
d.$275,000
My calculations equal $260,000
June:
275,000 (60%)
250,000 (30%)
200,000 (10%)
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Fundamental Financial Accounting Concepts
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Mark Edmonds, Christopher Edmonds
10th Edition
126015940X, 978-1260159400
