Question
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
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