Question
Cave Hardware's forecasted sales for April, May, June, and July are $170,000, $230,000, $150,000, and $210,000, respectively. Sales are 70% cash and 30% credit with
Cave Hardware's forecasted sales for April, May, June, and July are $170,000, $230,000, $150,000, and $210,000, respectively. Sales are 70% cash and 30% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $65,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 28% in the month of purchase and 72% in the following month. What are the cash collections budgeted for June at Cave Hardware?
$192,000 | ||
$109,000 | ||
$174,000 | ||
$105,000 |
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