Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hampshire Clinic in Manchester, England, prepared the following sales budget for the first 6 months. Sales are 20 each. Twenty percent of sales is for

Hampshire Clinic in Manchester, England, prepared the following sales budget for the first 6 months.

Sales are 20 each. Twenty percent of sales is for cash, and the remainder is on account. The firm forecasts the collection of sales on account to be 60% in the month of sale, with the remainder collected in the next month. Beginning receivables on January 1 is 40,000. If more customers use credit cards, causing cash sales to increase to 40% of total sales, by how much is cash increased in the second quarter, rounded to zero decimals?

Group of answer choices

1,280

6,640

97,120

98,400

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

Accounting For Governmental And Nonprofit Entities

Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely

19th Edition

1260118851, 9781260118858

More Books

Students also viewed these Accounting questions

Question

What do you plan on doing upon receiving your graduate degree?

Answered: 1 week ago