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Can you help answer this? Thanks. The following credit sales are budgeted by McNauley Industries: January February March April $204,000 300,000 420,000 360,000 The company's
Can you help answer this? Thanks. The following credit sales are budgeted by McNauley Industries: January February March April $204,000 300,000 420,000 360,000 The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. The anticipated cash inflow for the month of April is a. $370,320 b. $336,000. c. $360,000. d. $352,800. A company's past experience indicates that 60% of its credit sales are collected in the month ofsale, 30% in the next month, and 4% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: January February March $360,000 216,000 540,000 The cash inflow in the month of March is expected to be a. $440,640 b. $403.200. c. $324.000. d. $388,800. Kate Taylor Co. reported the following information for 2014 ober $460,000 Budgeted sales $540,000 $440,000 Budgeted purchases $240,000 $256,000 $288,000 . All sales are on credit Customer amounts on account are collected 50% in the month of sale and 50% in the following month. Cost of goods sold is 35% of sales. Kate Taylor purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. Accounts payable is used only for inventory acquisitions . How much cash will Kate Taylor receive during November? a. $270,000 b. $490,000 c. $500,000 d. $540,000
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