Question
P4 7 Cash receipts A firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June and
P47 Cash receiptsA firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June and $100,000 in July and in August. Assuming that sales are the only source of cash inflows and that half of them are for cash and the remainder are collected evenly over the following 2 months, what are the firms expected cash receipts for June, July, and August?
| Problem 4-7: | ||||||||
| April | May | June | July | August | ||||
| Sales |
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| $65,000 | $60,000 | $70,000 | $100,000 | $100,000 | |
| Cash sales (50%) |
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| Collections: |
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| 1 month ago (25%) |
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| 2 months ago (25%) |
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| Total Cash Receipts |
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Ecological Money And Finance
Authors: Thomas Lagoarde-Segot
1st Edition
3031142314, 978-3031142314
