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NOWWWW Your assistant has gathered the following budgeted information data for Clark merchandising company: Budgeted sales (all on credit) for November, December, and January are
NOWWWW
Your assistant has gathered the following budgeted information data for Clark merchandising company:
- Budgeted sales (all on credit) for November, December, and January are $252,000, $222,000, and $213,000, respectively.
- Cash collections of credit sales are expected to be 70% in the month of sale and 30% in the month following the sale.
- The cost of goods sold is always 65% of sales.
- Each months ending inventory equals 15% of next months cost of goods sold.
- 40% of each months merchandise purchases are paid in the current month and the remainder is paid in the following month.
- Monthly selling and administrative expenses that are paid in cash in the month incurred total $27,000.
- Monthly depreciation expense is $26,500.
From this data you determine that the expected cash collections from customers in December would be:
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