(i) D F, Inc expects sales of $620, $650, $730 and $780 for the months of April through July, respectively The firm collects 25 percent of sales in the month of sale, 55 percent in the month following the month of sale and 17 percent in the second month following the month of sale The remaining 3 percent of sales is never collected How much money does the firm expect to collect in the month of July (SHOW YOUR WORK) (ii) On April 1 st , ABD Co had a beginning cash balance of $250 ABDs sales are on credit only Sales for March were $450 and April sales were $610 During April ABD had cash expenses of $180 and payments on accounts payable of $240 ABDs accounts receivable period is 30 days What is ABDs beginning cash balance on May 1 st

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

(i) D & F, Inc. expects sales of $620, $650, $730 and $780 for the months of April through July, respectively. The firm collects 25

(i) D & F, Inc. expects sales of $620, $650, $730 and $780 for the months of April through July, respectively. The firm collects 25 percent of sales in the month of sale, 55 percent in the month following the month of sale and 17 percent in the second month following the month of sale. The remaining 3 percent of sales is never collected. How much money does the firm expect to collect in the month of July? (SHOW YOUR WORK)

(ii) On April 1^st, ABD Co. had a beginning cash balance of $250. ABDs sales are on credit only. Sales for March were $450 and April sales were $610. During April ABD had cash expenses of $180 and payments on accounts payable of $240. ABDs accounts receivable period is 30 days. What is ABDs beginning cash balance on May 1^st?