Question
Mikhail Corporation has the following sales forecasts for the first three months of 2018: Month Sales January P36,000 February 24,000 March 40,000 Sixty-five percent of
Mikhail Corporation has the following sales forecasts for the first three months of 2018:
Month
Sales
January
P36,000
February
24,000
March
40,000
Sixty-five percent of sales are collected in the month of the sale and the remainder are collected in the following month.
Accounts receivable balance (January 1, 2018)
P16,000
Cash balance (January 1, 2018)
12,000
Minimum cash balance is P20,000. Cash can be borrowed in P1,000 increments from the local bank (assume no interest charges). How much cash would be collected in March from sales?
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
13th Edition
8120335643, 136126634, 978-0136126638
