Question
Northwest Sales Corporation makes collections on sales according to the following schedule: 35% in month of sale 60% in month following sale 5% in second
Northwest Sales Corporation makes collections on sales according to the following schedule:
35% in month of sale
60% in month following sale
5% in second month following sale
Actual sales for March were $425,000 and second quarter sales are projected to be as follows:
|
| Sales |
| April | $ 400,000 |
| May | $ 250,000 |
| June | $ 325,000 |
How much cash can the company expect to collect in the month of June?
| $395,000 | ||
| $148,750 | ||
| $540,000 | ||
| $463,750 |
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
