Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Blooming Products Inc. sells flower bulbs to local nurseries. Each bag of bulbs sells for $10 . The company's accountant has prepared the following sales

Blooming Products Inc. sells flower bulbs to local nurseries. Each bag of bulbs sells for $10. The company's accountant has prepared the following sales forecast (in bags) for the fourth quarter of 2019:

October

5,000 bags

November

9,000 bags

December

8,000 bags

Historically, the cash collection of sales has been as follows: 60 percent in the month of sale, 30 percent in the month following sale, 8 percent in the second month following sale, 2 percent of sales is un-collectible.

Determine the projected cash receipts for December 2019.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting A Focus on Ethical Decision Making

Authors: Steve Jackson, Roby Sawyers, Greg Jenkins

5th edition

324663854, 978-0324663853

More Books

Students also viewed these Accounting questions

Question

3 What are the various ways to handle the payment of estate tax?

Answered: 1 week ago

Question

How is use of the word consistent helpful in fraud reports?

Answered: 1 week ago