Question
A consultancy firm has two types of clients, service providers and manufacturers. 57% of clients are service providers. Historical patterns of billing receipts are presented
A consultancy firm has two types of clients, service providers and manufacturers. 57% of clients are service providers.
Historical patterns of billing receipts are presented as follows:
Service providers
Manufacturers
During month of service
20%
10%
During month following service
50%
40%
During second month following service
20%
40%
Uncollectable
10%
10%
Sales forecast in the second half of the year is as follows:
Month
Estimated amount
July
$4,500,000
August
5,000,000
September
5,500,000
October
5,700,000
November
5,800,000
December
5,500,000
What is the expected amount of cash received in November?
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Corporate Financial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
12th edition
1305041399, 1285078586, 978-1-133-9524, 9781133952428, 978-1305041394, 9781285078588, 1-133-95241-0, 978-1133952411
