Assume a company is preparing a budget for its first two months of operations. During the first
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Question:
Assume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $62,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?
Multiple Choice
$21,700
$49,000
$40,300
$36,400
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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