Question
OrioleInc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2020 are: March April May June July Budgeted
OrioleInc. reports all its sales on credit, and pays operating costs in the month incurred. Amounts for 2020 are:
March April May June July
Budgeted sales $299900 $289800 $319800 $279900 $210100
Budgeted purchases $144600 $119400 $128500 $131700 $90500
Customer amounts on account are collected70% in the month of sale and30% in the following month.
Cost of goods sold is65% of sales
.Oriolepurchases and pays for merchandise35% in the month of acquisition and65% in the following month.
Operating expenses are: Salaries, $50900; Depreciation, $11900; Rent, $14600; and Utilities, $14500
.Accounts payable is used only for inventory acquisitions.
How much cash willOriolereceive during May from customers?
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