Question
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: |
August sales (actual) | $ 43,000 |
September sales (actual) | $ 53,000 |
October sales (estimated) | $ 23,000 |
November sales (estimated) | $ 73,000 |
December sales (estimated) | $ 63,000 |
Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. |
Budgeted collections from customers in October total: |
$119,000.
$43,200.
$34,000.
$29,700.
Budgeted collections from customers in November total: |
$149,000.
$62,000.
$50,700.
$56,000.
Budgeted collections from customers in December total: |
$62,000.
$159,000.
$52,000.
$59,700.
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