Question
FI 201 Assignment for Chapters 23 and 24 1. The chief financial officer of AJAX Industries expects sales to increase from $8,000,000 in 2010 to
FI 201
Assignment for Chapters 23 and 24
1. The chief financial officer of AJAX Industries expects sales to increase from $8,000,000 in 2010 to $12,000,000 in 2011. Current assets in 2010 are equal to $5,000,000. Using the percent of sales method, projected current assets for 2011 are equal to: (Please Show your work)
A) $5,500,000
B) $7,083,333
C) $9,000,000
D) $7,500,000
2. Mercer, Inc. had the following sales for the past six months. Mercer collects its credit sales 30% in the month of sale, 60% one month after the sale, and 10% two months after the sale.
Cash Sales Credit Sales
January $50,000 $50,000
February $70,000 $110,000
March $55,000 $95,000
April $78,000 $130,000
May $80,000 $105,000
June $75,000 $148,000
What are Mercer's total cash receipts for the month of March? (Please Show your work)
A) $99,500
B) $119,000
C) $150,000
D) $154,500
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